Federal Reserve Vice Chairman Janet Yellen said a third round of large-scale securities purchases might become warranted if necessary to boost a U.S. economy challenged by unemployment and financial turmoil. The central bank should also give âcareful considerationâ to Chicago Fed President Charles Evansâs proposal to tie the near-zero interest-rate pledge to specific levels of unemployment and inflation, Yellen said today in a speech in Denver. The remarks signal Fed officials may be prepared to delve further into unprecedented monetary territory and take criticism inside and outside the central bank for expanding the balance sheet. Fed policy makers are struggling to lower unemployment thatâs been stuck near 9 percent or higher for 30 months without boosting inflation thatâs already close to the central bankâs long-run goal. âSecurities purchases across a wide spectrum of maturities might become appropriate if evolving economic conditions called for significantly greater monetary accommodation,â Yellen said in prepared comments to the annual meeting of the Financial Management Association International. http://www.bloomberg.com/news/2011-...anted-if-more-easing-needed-for-stimulus.html Meanwhile, I have to admit, I adore the clear language of FED members in comparison to their European counterparts. By the way : this piece of news fits perfectly into the almost record high level of EURO short positioning: http://cftc.gov/dea/futures/deacmelf.htm This could end up in a nice EUR/USD short covering rally. See you at 1.5022...
"...a third round of large-scale securities purchases might become warranted if necessary to boost a U.S. economy " Insanity: doing the same thing over and over again and expecting different results. Albert Einstein