The Fed’s Bullard says the FOMC decision to leave the Fed’s asset purchase program (quantitative ease) unchanged reflects some improvement in the US economy. Deflation risks are abating though they have not completely fone, he says will any threat to Fed independence could alarm foreign investors and raise bond yields. Bullard could be referring to the proposal that the Fed consult with the Treasury in its role as systemic risk regulator.
A review of the Fed’s asset purchase program will take place over the summer as they get more economic data.
EUR/USD continues to range trade with a slightly lower bias, now at 1.4030.
