Fed’s Bullard Says ECB Needs ‘Aggressive’ QE to Avoid Japan Fate

Federal Reserve Bank of St. Louis President James Bullard said Europe risks an extended period of low growth and deflation like Japan’s unless the European Central Bank acts with an aggressive quantitative easing program.

“You should worry about it, and then take policy action to avoid it,” Bullard said in Frankfurt today in response to an audience question after a speech. “You want to be pretty sure that you don’t get stuck in that situation, and one way to get stuck would be to be passive in this situation and not take some aggressive action to try to get inflation back.”