NY Fed’s Dudley: Another Round of QE Would Have Costs

SYRACUSE, New York (MNI) – There are costs to another round of
quantitative easing, which monetary policymakers would have to
calculate, New York Federal Reserve Bank President William Dudley said
Thursday.

“It’s not free to have another round of quantitative easing,”
Dudley said, citing the possibility of long-term inflationary risks, in
response to a question follows a speech to the Syracuse Center for
Economic Development.

Dudley also said he sees no reason at present to alter the position
of the policy-setting Federal Open Market Committee.

“Short-term rates will be exceptionally low at least until the end
of 2014,” he said, in response to a question about the direction of
monetary policy.

“The monetary policy regime is holding down interest rates, but
this is temporary,” Dudley said, noting that the national debt cost “is
actually worse if you factor in a normal state of interest rates.”

** MNI Washington Bureau: 202-371-2121 **

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