The QE3 Guessing Game
The commotion surrounding a potential third round of quantitative easing continues. In the latest development, St. Louis Fed President Bullard stated that QE3 was unlikely to happen, noting that he's not sure the economic data warrants "gigantic" action on the part of the Federal Reserve. This comes as not much of a surprise considering that Bullard has historically been hawkish on quantitative easing.
On the other side of the spectrum, Federal Reserve Bank of Chicago President Charles Evans, historically dovish on quantitative easing, continued his proponency of a third round of quantitative easing. This time, he was addressing reporters and Beijing and expanded his field to include encouragement for easier monetary policy across the world.