(Reuters) - A top Federal Reserve official said on Thursday large-scale bond buying can be an effective monetary policy substitute when the central bank runs out of room to cut interest rates.
Speaking on the final day of the Fed's latest bond-buying initiative, St. Louis Federal Reserve President James Bullard pronounced the purchases, which have totaled $2.3 trillion in all, successful in easing financial conditions.
"This experience shows that monetary policy can be eased aggressively even when the policy rate is near zero," he said at a St. Louis Fed conference evaluating quantitative easing.
Speaking on the final day of the Fed's latest bond-buying initiative, St. Louis Federal Reserve President James Bullard pronounced the purchases, which have totaled $2.3 trillion in all, successful in easing financial conditions.
"This experience shows that monetary policy can be eased aggressively even when the policy rate is near zero," he said at a St. Louis Fed conference evaluating quantitative easing.
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