Two Fed Policy Makers Oppose Additional Mortgage-Bond Purchases

Two Federal Reserve officials opposed additional mortgage-bond purchases by the Fed, saying the measure isn’t needed and that the U.S. central bank shouldn’t interfere in credit markets.

James Bullard, president of the Federal Reserve Bank of St. Louis, said he doesn’t favor additional debt buying as inflation risks are “to the upside” and a damaged housing market limits the effectiveness of monetary policy. Philadelphia Fed President Charles Plosser said targeting a specific industry such as housing should be left to the U.S. Treasury.