St Louis Fed President Supports Continued QE, Markets Rally

The Federal Open Market Committee (FOMC) won’t meet until later this month to discuss what was supposed to be the end of quantitative easing, but in an interview with Bloomberg St. Louis Federal Reserve Bank (Fed) President James Bullard said that it may be too early to pull the plug. His comments caused US equity markets to rebound after a week-long correction erased essentially of the year’s gains.

“Inflation expectations are declining in the U.S.,” Bullard said. “That’s an important consideration for a central bank. And for that...