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Bullard Says QE to Have Maximum Impact in Six Months

Federal Reserve Bank of St. Louis President James Bullard said the impact from the central bank’s decision to buy $600 billion of Treasuries through June will probably stimulate the economy as soon as six months from now.

“Easing of monetary policy produces its maximum impact on real variables in the economy, including output, consumption, and investment, with a lag of six to 12 months and can be difficult to disentangle,” Bullard said today in a speech in New York.