Fed's Bullard: Improved Data Good Case To Stand Pat On QE
ST. LOUIS (MNI) - Recent U.S. economic data, particularly the December jobs report, show the economy is on the mend and another round of asset purchases is not warranted as long as the economy stays the course, St. Louis Federal Reserve President James Bullard said Friday.
"In my view the data has been stronger in recent weeks and months and so I think there is probably a good case to stand pat for now," Bullard told reporters on the sidelines of the Edward Jones Annual meeting in St. Louis Friday.
Bullard said quantitative easing is the Fed's "most potent weapon" and considering there has already been two rounds of it -- and the "very reasonable" chance that the economy continues to improve in the first half 2012 -- another round of asset purchases is not warranted.
"I think for now we are on track and I think that speaks to staying the course for now," Bullard said.
However, Bullard added that if the economy were to deteriorate "substantially" QE would come back on the table and could be reactivated.
Bullard said if the Fed were to go in that direction he would again advocate for doing it on a "meeting by meeting" basis and that he thinks there is more support for that than in the past.
** Market News International **