Fed's Brainard: Fed stands ready to increase amount of bond purchases

Eren Sengezer FXStreet

The US Federal Reserve stands ready to increase the amount of bond purchases should that be needed, St. Louis Federal Reserve President James Bullard said on Wednesday, as reported by Reuters.

"Asset purchases have been a key part of the monetary policy response to the pandemic and are providing substantial support in the form of lower rates," Bullard further added. "Purchases of mortgage-backed securities, in particular, are providing direct support."

Market reaction

The US Dollar Index showed no reaction to these remarks and was last seen gaining 0.2% on a daily basis at 90.25.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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