Bullard Recommends the ECB Follow the US Fed Policy

Massive asset purchases are the closest thing to normal monetary policy once interest rates get near zero, a senior Federal Reserve official said Tuesday, recommending that the European Central Bank weigh such action if inflation falls further.

St. Louis Federal Reserve Bank President James Bullard, a voting member of the Fed’s policy-setting committee, also said the U.S. central bank should keep buying bonds, while adjusting the pace of purchases up or down based on incoming economic data.

“Quantitative easing is closest to standard monetary policy, involves clear action and has been effective,” Bullard said in remarks prepared for an economics lecture at the Goethe University in Frankfurt.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza