A skeptic might argue that noise and other sources of pricing inefficiency pervade the financial markets, so that improving the predictability of monetary policy is of limited importance in practice, except perhaps to a few brokers and traders.
James Bullard, president of the Federal Reserve Bank of St Louis, has also examined the post-2008 experience and whether quantitative easing has exacerbated US inequality.6 It has been suggested that the Fed’s policy of buying US government bonds and mortgage-backed securities has depressed real yields on relatively safe assets and thus encouraged savers to move into riskier assets, such as equities, raising their prices.