• Policy has always been data dependant
  • QE isn’t a straight line to zero
  • We got some weaker data which allowed for a delay
  • US economy isn’t that fragile
  • Transparency can’t now be reversed
  • Inflation is low and we can be patient on policy
  • QE can’t be seen as ineffective after June and September meetings
  • No taper, small taper was a borderline call

That’s an important line as it can wipe out expectations of a high taper number. Bullard also said that as far as the markets go what’s the difference between $5-10bn taper?

  • Weak employment and mixed data argued for no taper
  • There’s a lot of uncertainty still when tracking the economy

Off to a break now.