Lockhart Says Fed Shouldn’t Rule Out QE Amid European Risks
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Federal Reserve Bank of Atlanta President Dennis Lockhart said policy makers need to retain the option of starting a new round of bond buying to spur the U.S. expansion as it faces risks from the weak economies of Europe.
“As popular as it might be in some quarters to rule out” a third round of so-called quantitative easing, “I do not think this option can be taken off the table,” Lockhart said today in Tokyo. “QE3 will work under the right circumstances. But I don’t believe such circumstances prevail at this time.”