Fed’s Bullard: Watch QE, not rates

St. Louis Fed president Bullard says that markets should focus on the Fed’s quantitative ease policies and not interest rates for the near-term. It will adjust policy via removing accommodation via quantitative measures rather than adjusting nominal interest rates, he says. Rates did not rise for 2.5 to 3 years after the last recession, Bullard noted.

Looks like nominal rates will stay low for a long-time but QE methods will be scaled back. That supports the risk trade, helping boost EUR/USD. Gold reached $1150 on the latest pop.