Speaking in London, the US Fed's James Bullard has said that "QE is the way to go" as there are worries that while unemployment could be ready to decline, it may still be as high as seven per cent in the US by the end of 2013. He went on to say that the implementation of exit steps was not being considered.
In agreement with comments by Fed chairman Ben Bernanke yesterday, he suggested that the US should continue and adjust the rate of purchases based on incoming data. This will increase the significane of regular US data such as non-farm payroll figures.
Bullard noted that there are concerns that US inflation may still be too low. He also added that the introduction of negative interest rates would probably have limited effects.