Daily Archives: July 14, 2011

Robin Harding

Well done to Tim Johnson, chairman of the Senate Banking Committee, for asking Ben Bernanke the direct question that finally let him spell out his position on QE3. That position was clearly implied by his comments yesterday and the minutes of the June FOMC meeting but Mr Bernanke’s reply today made it explicit. Bold is mine.

JOHNSON: The Fed, to its great credit, has pursued policies to stimulate the economy. However, although the Fed continues to hold short-term interest rates near zero, it has ended efforts to reduce longer-term rates through quantitative easing. Given the high rate of unemployment and relatively slow growth in output, why not start a new round of easing, a QE3? Read more

Claire Jones

The Bank of England’s Asset Purchase Facility – the vehicle through which it conducts QE – is up £9.8bn.

According to accounts released today, an increase in the mark-to-market value of bonds held by the facility (the vast majority of which are gilts) coupled with £11.8bn in cash, largely from coupons, means the assets held on its balance sheet were worth £209.7bn. The Bank has loaned £199.9bn. Read more