NEW YORK, Sept 20 The Federal Reserve's surprise
decision to maintain its monthly bond purchases improved rather
than damaged the U.S. central bank's credibility, a top Fed
official said on Friday.
"I think it enhanced our credibility in the sense that it
showed we really are paying attention to data and not on some
automated program to cut QE to zero," St. Louis Fed President
James Bullard told reporters following a speech in New York.
The Fed's decision on Wednesday surprised financial markets,
which had expected the Fed to trim its purchases this month.
Policymakers said this week they needed to see more improvement
in the U.S. economy.
Kansas City Fed President Esther George, who was the lone
dissenter against the decision, said Friday the Fed had damaged
its credibility by deciding not to act.