Fed's Own Official Raises Doubts About New $600 Billion Program

WASHINGTON (AP) — A Federal Reserve official with a close working relationship with Chairman Ben Bernanke is expressing skepticism over the Fed's new $600 billion program to bolster the economy.

Kevin Warsh, a Fed governor, warns that there are "significant risks" associated with the Fed's bond-buying program, including the potential for triggering inflation.

The Fed's program, announced last week, is aimed getting Americans to spend more and invigorate the economy by making loans cheaper. But Warsh doubts the program will have "significant" or "durable benefits" for the economy. Despite his reservations, Warsh voted for the program.

During the 2008 financial crisis, Warsh worked closely with Bernanke to craft programs to get credit — the economy's oxygen — to flow again.