Forex Flash: Fed Bullard open to scaling back QE if conditions match - BTMU

Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that yesterday, St. Louis Fed President Bullard gave a speech and emphasised the more powerful monetary stance this year compared to last year.

He comments Bullard mentioned that the outright purchases of USD 85bn of securities now plus the specific link of rate changes to an unemployment level made the stance much more aggressive. Halpenny writes, “He added that he wanted to see how the economy performed through the Spring before deciding whether the current degree of easing was appropriate. The initial claims data yesterday offered hope that the US economy is improving. Industrial production will be the main economic data release today.”