Fed’s Bullard calls for further QE


The Federal Reserve should expand its quantitative easing program further to avoid becoming entangled in a Japanese-style deflationary trap, James Bullard, the president of the St. Louis Federal Reserve, said on Thursday.

In a research note, Bullard said the Federal Open Market Committee (FOMC) must react to negative shocks in the economy by introducing further quantitative easing programs. He also warned that committing to extended periods of low interest rates may increase the probability of

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