Added by David Sandercock on October 8, 2010
Richard Fisher, President of the Federal Reserve Bank of Dallas, said that more monetary easing was not to be expected.
The statement meant to inform investors against high expectations on the bank’s activities and made it clear that this was not a closed deal.
Fisher said that he is not too sure of another purchase of large-scale asset and that there was a lot to be investigated. Laurence Meyer from Macroeconomic Advisers LLC said that there is likely to be another purchase of assets once they are through with the meeting to be held at the beginning of November.
Fishersaid the bank’s decision makers have yet to establish whether to go ahead with the purchases or not. He also said a lot still had to be checked to decide whether the deal was beneficial or not for the bank.
The Federal Open Market Committee (FOMC) talked about how it was prepared to do everything necessary to stabilize its prices and employment.
William Dudley, president of the Fed Bank, said in a speech that FOMC would resume the purchase once the next meeting would be held. This was taken as a strong sentiment by Edward McKelvey who is Goldman Sachs Group Inc’s economist.