James Bullard comments on the Fed’s dual mandate. Mr. Bullard has been a proponent of quantitative easing 2.0. One may wonder why he favors another round of money printing after hearing him rightly explain that the Fed cannot create jobs. I repeat the Fed cannot create jobs. The only thing the Fed can do is provide price stability. With inflation near zero, what exactly is the purpose of injecting another $600 billion in high powered money into the banking system?
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Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.