Cleveland Fed's Pianalto defends QE2 saying that she is encouraged that QE2 was able to make CPI inflation closer to 2% target
Cleveland Fed President Sandra Pianalto speaking at Case Western Reserve University stated that she expects core inflation to be quite subdued through 2013 with further disinflation a risk to the outlook. She indicated that there were enough signs of negative growth and disinflation risks to merit QE2. Via ABC:
"I voted to support additional asset purchases, and I am encouraged by the results so far," she said.
"For example, inflation expectations have moved closer to my long-term inflation objective just in anticipation of our announcement, and they have stayed that way."