The #1 Candidate To Replace Bernanke Gives A Huge Endorsement Of Continuing QE

Federal Reserve Vice Chair Janet Yellen is the favorite to replace Ben Bernanke, and she's just delivered a speech in DC titled Challenges Confronting Monetary Policy.

The whole speech is worth reading, but pretty much this is the most important line:

Turning to the potential costs of the Federal Reserve's asset purchases, there are some that definitely need to be monitored over time. At this stage, I do not see any that would cause me to advocate a curtailment of our purchase program.

This echoes the same sentiment expressed by Bernanke, himself, in a speech from Friday, wherein he said:

In light of the moderate pace of the recovery and the continued high level of economic slack, dialing back accommodation with the goal of deterring excessive risk-taking in some areas poses its own risks to growth, price stability, and, ultimately, financial stability. Indeed, as I noted, a premature removal of accommodation could, by slowing the economy, perversely serve to extend the period of low long-term rates.