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QE - Bullard?


Uccmal

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Can someone explain to me the politics of the federal reserve.  Bullard comes out today and suggests QE should/could be continued.  The markets stop falling, and are maybe rallying. 

 

So, Do Bullard's statements mean that the fed is in agreement on this possibility?

 

Is he going counter to Yellen's statements, or is this just a pre agreed upon something or other between him and the others. 

 

Yellen"okay James, I will talk about pushing off rate increases but stopping QE.  In case that doesn't work, you say sometime next week like 'we could continue with the bond buying'"

Bullard "Sounds good, it worked last year before Ben stepped down."

 

Obviously I am baffle gabbed by Orwellian doublespeak. 

 

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Can someone explain to me the politics of the federal reserve.  Bullard comes out today and suggests QE should/could be continued.  The markets stop falling, and are maybe rallying. 

 

So, Do Bullard's statements mean that the fed is in agreement on this possibility?

 

Is he going counter to Yellen's statements, or is this just a pre agreed upon something or other between him and the others. 

 

Yellen"okay James, I will talk about pushing off rate increases but stopping QE.  In case that doesn't work, you say sometime next week like 'we could continue with the bond buying'"

Bullard "Sounds good, it worked last year before Ben stepped down."

 

Obviously I am baffle gabbed by Orwellian doublespeak.

 

It means nothing. He's President of the St Louis Fed.  He isn't even on the FOMC this year so he doesn't vote.  Each individual Fed president goes out periodically (some more than others) and shoots their mouth off.  It's likely his own opinions only.  It's not worth too much other than the fact that he's traditionally hawkish so if he is saying let's maybe keep some QE that might be viewed that other hawks feel similarly and are open to cracking the door back open.

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