Fed's Bullard points to signs of success from QE, sees no asset bubbles
NEW YORK, Sept 20
NEW YORK, Sept 20 (Reuters) - The Federal Reserve's unprecedented monetary easing has been "fairly successful" and has not created a new bubble in asset prices, a top U.S. central bank policymaker said on Friday.
St. Louis Fed President James Bullard, defending the Fed's bond-buying programs, also known as quantitative easing, said evidence of success can be seen in sectors of the economy such as automobile sales and in gains in U.S. stock prices.
While policymakers watch asset prices constantly, Bullard said he does not think the Fed's purchases are creating a new asset price bubble akin to past ones in technology stocks or housing.
"The bubbles we had in the past were gigantic and obvious. I don't see anything like that going on right now," he said.
- Flights delayed as air pollution hits record in Shanghai
- White House reverses, says Obama met uncle and lived with him during law school
- South Africa mourns Mandela, will bury him on December 15 |
- French launch Central African Republic mission but deaths mount
- Supreme Court to decide on patent protections for software