Volcker Says Future Inflation Risk Limits QE Effect

Former U.S. Federal Reserve Chairman Paul Volcker on Friday repeated his skepticism about the benefits of the Fed’s latest QE, citing concern about long-term inflation. “It’s hard to have a big impact on the short-term interest rate that is already zero, and on the bond-market … two things are working in opposite ways on the interest rate,” he said, referring to concerns about long-term inflationary pressure. – Reuters

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