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The US Federal Reserve stands ready to increase the amount of bond purchases should that be needed, St. Louis Federal Reserve President James Bullard said on Wednesday, as reported by Reuters.

“Asset purchases have been a key part of the monetary policy response to the pandemic and are providing substantial support in the form of lower rates,” Bullard further added. “Purchases of mortgage-backed securities, in particular, are  providing direct support.”

Market reaction

The US Dollar Index showed no reaction to these remarks and was last seen gaining 0.2% on a daily basis at 90.25.