Bullard Says Fed Should Consider Delay in Ending QE
The Federal Reserve should consider delaying the end of its bond purchase program to halt a decline in inflation expectations, said St. Louis Federal Reserve Bank President James Bullard.
Speaking in an interview today with Bloomberg News in Washington, Bullard said U.S. economic fundamentals remain strong, and he blamed recent financial-market turmoil on downgrades in the outlook for Europe.
“Inflation expectations are declining in the U.S.,” he said. “That’s an important consideration for a central bank. And for that reason I think that a logical policy response at this juncture may be to delay the end of the QE.”
Bullard is the first Fed official to publicly suggest the central bank should extend its program of quantitative easing when policy makers meet later this month. U.S. stocks pared losses and Treasuries declined on expectations the Fed will take action to insulate the U.S. from global economic weakness.
“We are watching and we’re ready and we are willing to do things to defend our inflation target,” Bullard said.
จะต่อQE ? หรือ QE4?
The Federal Reserve should consider delaying the end of its bond purchase program to halt a decline in inflation expectations, said St. Louis Federal Reserve Bank President James Bullard.
Speaking in an interview today with Bloomberg News in Washington, Bullard said U.S. economic fundamentals remain strong, and he blamed recent financial-market turmoil on downgrades in the outlook for Europe.
“Inflation expectations are declining in the U.S.,” he said. “That’s an important consideration for a central bank. And for that reason I think that a logical policy response at this juncture may be to delay the end of the QE.”
Bullard is the first Fed official to publicly suggest the central bank should extend its program of quantitative easing when policy makers meet later this month. U.S. stocks pared losses and Treasuries declined on expectations the Fed will take action to insulate the U.S. from global economic weakness.
“We are watching and we’re ready and we are willing to do things to defend our inflation target,” Bullard said.