St Louis Fed's Bullard Would Like To See "Small" Asset Purchases

What was that about the Fed being the firefighter and not the arsonist? Looks to me like St Louis Fed President James Bullard is grabbing the matches and lighter fluid as we speak.

The call for QE 2.0 continues!


Bullard suggested that the FOMC announce Treasury purchases in “small increments,” similar to the way the Fed typically raises or lowers the short-term federal-funds rate by a quarter percentage point, or 25 basis points.

The St. Louis Fed chief envisions Fed purchases of $100 billion to start, with further Treasurys buys contingent on the evaluation of economy at future FOMC meetings. The FOMC would have the flexibility to pause or increase the Fed’s Treasurys purchases depending on economic conditions, Bullard said.

Maybe I don't have my macro glasses on but since when is $100 billion small? And if it is, in fact, just a tiny little blip in a sea of Dirty Fed blips, why even talk about it?

As I have said before, if the Fed is going to come I want them to come monetary guns blazing, blowing up the joint with automatic fire. Small increments? Please, where is your sense of adventure, JB?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


chairmanben said...

Fed’s predicament like a golfer stuck in a sand bunker. Tap lightly or Big Burtha?

Let hope Bernanke doesn't slice the shot...

W.C. Varones said...

Bernanke's not the golfer. He's the groundskeeper.

chairmanben said...

Bernanke already has egg on his chin.

Lets hope he doesn't get sand as well.