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Fed’s Bullard Says Low Inflation May Warrant Longer QE

Federal Reserve Bank of St. Louis President James Bullard, who has voted this year in favor of maintaining stimulus, said inflation below the central bank’s 2 percent target may warrant prolonging the “aggressive” use of bond buying to spur growth and bring down unemployment.

While “labor market conditions have improved since last summer,” Bullard said today in remarks during a panel discussion in Montreal, “surprisingly low inflation readings may mean the Committee can maintain its aggressive program over a longer time frame.”