A member of the US Federal Reserve suggested
Thursday that the central bank should consider prolonging its
bond-buying stimulus program, which is due to begin to wind-up this
month.
James Bullard, the head of the St Louis
branch of the Fed, is not a voting member of the bank's monetary
committee, but markets will pay attention to his views as the Fed weighs
its options.
He told Bloomberg Television he was
concerned about falling inflation forecasts and said quantitative easing
– the Fed's large-scale bond-buying programme – should continue.
"Inflation expectations are dropping in the US and that is something that a central bank cannot abide," Bullard said.
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