We’ve been led to believe by Chairman Bernanke that quantitative ease would be used if the US economy weakened materially. We now here from NY Fed president Dudley now implies that QE could be used to spark faster growth without waiting for a double dip, a bit of a shift, but one the market suspected all along.
On the flip side, Dudley says he is quite optimistic that the economy will keep growing and that worries about the Fed’s ability to exit markets are mistaken.
