Dudley as avatar of quantitative ease predicts credit creation
Among dozens of public appearances by Federal Reserve officials between their last two meetings, one stands out: New York Fed President William Dudley’s Oct. 1 speech that more monetary stimulus likely was needed to combat “unacceptable” inflation and unemployment. The message from Dudley, vice chairman of the policy- setting Federal Open Market Committee, was echoed three days later by the New York Fed markets-group chief, Brian Sack, who said further expansion of the central bank’s balance sheet would foster growth. They telegraphed to the market that more easing was coming, even as five other Fed officials articulated their opposition. On Nov. 3, the FOMC announced it would buy $600 billion in Treasuries in an unprecedented second round of unconventional easing.