Yellen letter #2: ‘Strong majority’ of FOMC believes QE has been effective
Yellen comments from a letter dated to Senator Vitter, dated Nov 18:
- QE purchases are not on a pre-set course
- FOMC deems that benefits of QE outweighing costs
- QE helped guard against deflationary pressures
- Fed aware of potential risks of bond buying
- Fed monitoring financial markets very carefully
Par for the course.