Paulson Says QE Exit Causes Volatility With Bernanke Hero

The Federal Reserve’s exit from quantitative easing will increase market volatility, said former U.S. Treasury Secretary Henry Paulson, who also praised Fed Chairman Ben S. Bernanke for navigating the economic recovery from the 2008 financial crisis.

The Federal Open Market Committee is scheduled to meet Sept. 17-18 to consider the future of the third round of quantitative easing known as QE3. Economists expect the Fed to reduce monthly asset purchases to $75 billion from $85 billion, according to a Sept. 6 Bloomberg News survey.