Would cutting program to $500 bln from $600 bln make a big difference? Probably not, Bullard, the father of QE2 says. It would send a subtle signal to the market that the Fed is serious on inflation “and that’s the business we are in”, he said.
Bullard is a key voice on QE2. We switched from the hawkish camp in mid-summer 2010 and began to advocate QE2 and the policy took on a life of its own from there.