Friday 23 August 2013

Bullard and former Fed's Kohn about QE

James Bullard, in an interview with CNBC said today that there is no rush to cut QE3.

Fed should carefully consider the decision. Fed Head of St. Luis added that QE3 has improved conditions in global financial markets, but the impact on the real economy is not clear.

Fed's Bullard also urges no rate increase with inflation below 1.5%

Donald Kohn, former vice chairman of the Board of Governors of the Federal Reserve, said the Fed's exit from unconventional policies is "more difficult this time around" and stressed that communication is "critical" to obtaining the desired effects of unwinding the easy-money policy.

"The decision about when to exit will be more difficult this time around: it follows a long period of disappointing economic performance, making it hard to have confidence that adequate expansion can be sustained without unusual policies," Kohn wrote as part of the Brookings Institution publication, "Think Tank 20: The G-20 and Central Banks in the New World of Unconventional Monetary Policy."

regards,
oscarjp

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