Inte för att det kom som någon större överraskning, men Federal Reserves James Bullard gav på torsdagen en finfin indikation om vad Fed har för avsikt med sitt QE-program.
Som Jim Sinclair sa häromdagen: $1650 is in the bag.
- BULLARD SAYS ‘NEVER SAY NEVER’ REGARDING POSSIBILITY OF QE3
- BULLARD SAYS INFLATION EXPECTATIONS ARE HIGHER, A SUCCESS OF QE
- BULLARD SEES OPTION OF BUYING BONDS MORE GRADUALLY INTO 3RD QTR
- BULLARD SAYS INFLATION WILL PROBABLY ACCELERATE
Federal Reserve Bank of St Louis President, James Bullard, alluded to the possibility of a third round of quantitative easing (QE3) in a speech today at the Bowling Green Area Chamber of Commerce.
“The natural debate now is whether to complete the program, or to taper off to a somewhat lower level of asset purchases. Quantitative easing has been an effective tool, even while the policy rate is near zero. The economic outlook has improved since the program was announced.”
However, he also stated that he would “never say never” regarding the possibility of QE3.
Bullard was the latest U.S. central banker to deliver the usual type of Fed-speak, which surprisingly received a shot in the arm yesterday courtesy of a refreshingly candid speech from Kansas City Fed President Thomas Hoenig.