Fed's Dudley: More Asset Purchases and QE Possible; Significant Downside Risks

New York Fed President Dudley, ine Ben Bernanke's inner circle, said yesterday that fed is not done with asset purchases or other QE measures: "The Fed is doing—and will continue to do—everything in its power to promote jobs and price stability,"  "I don't think the Fed has run out of bullets."


He added that the Fed might undertake more purchases of securities, i.e., quantitative easing: "It's possible we can do another round of quantitative easing,".

"We could potentially do more in that direction," "Clearly we've indicated our interest in supporting the mortgage market."

Calling the economy's performance this year "disappointing," "I regard continued modest growth as the most likely outcome" "there remain significant downside risks."