FED’S PLOSSER REVEALS SPLITS OVER QE2

THE recent upturn in the American recovery is unlikley to have been helped by the Federal Reserve’s second phase of quantitative easing (QE2), a leading Fed official said yesterday. Philadelphia Fed President Charles Plosser said it “stretches things” to argue that QE2 has impacted “the real economy.” Yet on Monday his Fed colleague Dennis Lockhart said: “I definitely believe QE2 has contributed to accumulating momentum.”