Fed’s Bullard Sees ‘Pretty High Hurdle’ to QE3

“Federal Reserve policymakers still see a “pretty high hurdle” before they would unleash a third round of quantitative easing, or QE3, a top Fed official said on Friday.

Speaking two days after the U.S. central bank decided to take a more modest policy step to help the flailing economic recovery, St. Louis Fed President James Bullard said the Fed has done “what it can do.”

“QE3 I think is viewed as still having a pretty high hurdle. We can do that, and I think it would be effective, but we would be taking a lot more risk on our balance sheet and we’d be going further into unchartered territory,” Bullard said on Bloomberg TV.”

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