Monetary Policy

Paul Volcker: QE3 "Will Fail"

So, tell us what you really think, Mr. former Federal Reserve chairman

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Paul Volcker, the former Federal Reserve chairman credited with taming the inflationary threat of the 1970s, has warned that further quantitative easing will fail to repair economies in Europe and the US.

Mr Volcker, addressing a conference at Gleneagles in Scotland, said the decision by the Fed to begin a third round of asset buying — nicknamed QE3 — amounted to the "most extreme easing of monetary policy" he could recall. Mr Volcker's comments came as the World Trade Organisation intensified the economic gloom by slashing its global growth forecasts.