Federal Reserve Bank of New York President William C. Dudley said the central bank has the option of starting a third round of asset purchases to stimulate growth.
“It’s possible that we could do another round of quantitative easing,” Dudley said today in response to audience questions after a speech to the Bronx Chamber of Commerce.
The Fed decided last month to reinvest proceeds from maturing housing debt into mortgage-backed securities and replace $400 billion of short-term Treasuries in the Fed’s portfolio with longer-term bonds. The decision prompted dissents from three regional Fed presidents: Richard Fisher of Dallas, Charles Plosser of Philadelphia and Narayana Kocherlakota of Minneapolis.
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