Fed’s Bullard says QE2 could be cut by some $100 bln

PRAGUE, March 29 (Reuters) – The U.S. Federal Reserve’s $600
billion asset purchase programme could be trimmed by some $100
billion given the strength of the U.S. economy, St. Louis
Federal Reserve President James Bullard said on Tuesday.
He said there seemed to be difference of opinion in the Fed
on the speed of reversing monetary easing.

“I think it could be on the order of $100 billion less than
what we had initially thought, but I would leave that up to how
the rest of the committee would want,” Bullard told reporters on
the sidelines of an economic conference in Prague.

He said he preferred a way of tapering off asset purchases,
then stopping them for a couple of months and keeping the
balance sheet steady before taking further measures.
(Reporting Jan Lopatka and Michael Winfrey)

Fed’s Bullard says QE2 could be cut by some $100 bln