Fed’s Dudley Says QE Helping to Spur Economic Growth

Federal Reserve Bank of New York President William Dudley said the central bank’s purchases of bonds have made the outlook for the economy “considerably brighter,” with growth likely to quicken this year and next.

“Several notable forces combined to encourage the resumption of stronger growth,” including plans to purchase $600 billion in bonds through June and “the lagged effects of its previous measures,” Dudley said today in a New York speech. Banks also “did begin to ease standards somewhat in the second half of 2010,” he said.