Daily Archives: August 19, 2010

James Politi

In late July, James Bullard, president of the Federal Reserve Bank of Saint Louis, gave a speech which for all intents and purposes signalled that the central bank was contemplating a tilt towards easier monetary policy. Usually known for being an inflation hawk, Mr Bullard raised that Japan-style deflation could unfold in the US, and said quantitative easing might be an appropriate response.

Well, Mr Bullard was back in action today, and at a presentation in his district – Rogers, Arkansas was the location – he argued that if the economy worsens, additional asset purchases (beyond the reinvestments of proceeds from expiring mortgage-backed securities that were agreed on August 10 by the Fed) might be necessary. 

Cutbacks hit business confidence – FT

Beijing doubles holdings of S Korean treasuries – FT