Bullard says Fed policy to stay easy despite exit chatter
REUTERS - The U.S. Federal Reserve will keep its loose monetary policy stance for a long while despite increasing signs of concern among policymakers about the potential costs of asset buying, a top Fed official said.
"Fed policy is very easy and it's going to stay easy for a long time, I think," James Bullard, St. Louis Fed president, said in an interview with CNBC television.
Bullard said Fed policy has actually become more aggressive because outright purchases of Treasuries are more powerful than a previously existing maturity expansion program that did not involve balance sheet expansion.
He argued the economy could grow as much as 3 percent this year now that some of the key risks to the global economy, like the fiscal cliff or the prospect of a euro zone break-up, had receded.
(Reporting By Pedro Nicolaci da Costa; Editing by Chizu Nomiyama; Editing by Chizu Nomiyama)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Investors in India's markets are betting that Finance Minister Arun Jaitley will persuade a more hawkish central bank to reduce benchmark interest rates as early as next week. Full Article