Additional easing from the Federal Reserve wonâ€™t result in more bank lending, Sheila Bair, the former chair of the Federal Deposit Insurance Corp., told CNBCâ€™s â€œSquawk Boxâ€ on Monday.
â€œIf I had any confidence [that] it would help lending support real economic activity, I would say go for it, but there are significant risks,” Bair said.
She said central banks have become the only game in town in both Europe and the U.S., but â€œQE is not resulting in more lending.â€
Instead of the Federal Reserve, Bair said itâ€™s Congress that should be working on policies to address unemployment and the countryâ€™s fiscal issues.
Without congressional action, the Fed is in a difficult position, Bair noted, adding â€œI don’t think QE3 is going to help, and I think thereâ€™s a risk to it.â€
Bair worries about inflation and â€œthe Fedâ€™s ability to control the interest rate environment when that happens.â€