- MarketPulse - https://www.marketpulse.com -

Bullard Fed not Close to Winding Down Stimulus

A senior central banker sought to give reassurance on Thursday that the Fed is in no hurry to start winding down its economic stimulus after comments by chairman Ben Bernanke sent stock markets tumbling.

James Bullard, president of the Federal Reserve Bank of St. Louis, said on Thursday he did not think the Fed was “that close” to starting the process of winding down its support although it was the likely next step if the economy continued to improve and inflation picks up.

Share prices around the world fell sharply after Bernanke said on Wednesday that the Federal Reserve may start to trim its bond purchases at one of its next policy meetings.

Bernanke also said the Fed needed to see more signs of recovery in the U.S. economy before scaling back its stimulus, but investors focused less on those comments.

Bullard, speaking in London, said the U.S. economy was improving but he would like to be sure inflation was heading back towards target before the Fed started winding down its support program.

via Reuters [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

Latest posts by Alfonso Esparza (see all [6])