Fed’s Bullard: More QE, not extended period lanquage

St. Louis Fed president Bullard says in a paper that it is better to resort to more buying of US Treasuries in case of falling consumer prices than to extending the extended language period over the medium-term. That language could cause inflation to drop as well as inflation expectations.

An interesting thought exercise, but above my pay-grade.

USD/JPY is sliding on the QE talk as US Treasuries rally at the prospect of the government coming back into the market. Stocks continue to slide, a further factor boosting Treasury prices, undercutting yields.

USD/JPY is at session lows of 86.66.