quoted in a report to lawmakers.
Tucker comments
- any perception of our wavering in our commitment to sound money would undermine ability to sustain stimulus
- existing QE is likely to be more effective than late 2012
- sees great uncertainty, MPC needs to adopt ‘watchful and probing’ approach
- we should not start to withdraw monetary stimulus until we have secured ‘escape velocity’
- remains open to to doing more QE depending on outlook for demand and inflation
Now McCafferty
- risks of an immediate euro zone break-up have receded, but Italian election show risks remain
