Feds: Pianalto

1. Pianalto: Credit standards still tight despite QE
2. Pianalto: Benefits of QE may diminish over time
3. Pianalto: More analysis of QE is needed
4. Fed's Pianalto backs more easing if weak data last 
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6. Additional monetary policy easing could be warranted if the economy continues to lose momentum, said Sandra Pianalto, the president of the Cleveland Federal Reserve Bank, on Tuesday. In a speech in Erie, Pa., Pianalto said there is no question that more asset purchases could lower long-term interest rates. But she called for analysis on whether future bond purchases, otherwise known as quantitative easing, would yield smaller interest rate declines than past rounds. She noted that credit standards are still tight, suggesting that further rate reduction may not translate into much borrowing and spending as would be the case in more normal times. It is also conceivable that the Fed's presence in certain securities markets would become so large that it would distort market functioning, Pianalto said. "The FOMC's large-scale asset purchase programs have been an important economic stabilizer and are supporting the expansion. But these programs may entail costs, and that is why the FOMC constantly reviews the costs and benefits of our policy actions," Pianalto said