Fed's Lockhart 'Comfortable' With Asset Purchase Program

(RTTNews) - The Federal Reserve's $600 billion quantitative easing program provides support to a shaky recovery and insurance against serious downsides, a top Fed official said on Monday.

Federal Reserve Bank of Atlanta President Dennis Lockhart said he was "comfortable" with his decision to back the central bank's new asset buying scheme, dubbed QE2.
"Since late August, when Fed Chairman Ben Bernanke discussed the policy at the Kansas City Fed's annual economic symposium, the S&P 500 index has risen about 20 per cent, the probability of deflation has declined markedly, and fears of a double-dip recession have faded," he said.
"I won't claim that all those developments have been the direct result of the monetary policy actions, but I definitely believe policy has contributed to accumulating momentum and a better outlook," Lockhart said.