Factbox-Ready to taper or waiting for more data? Recent Fed officials’ comments By Reuters
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© Reuters. FILE PHOTO – The Federal Reserve Building is shown in Washington, DC, U.S.A, August 22, 2018. REUTERS/Chris Wattie/File Photo(Reuters) – The Federal Reserve has said it will start to reduce its bond purchases as soon as November if the economy continues on its current track.
For a last bit of proof that the economy has made “substantial additional progress,” officials will look at the September employment report (due Oct. 8). Others believe the benchmark has already been reached and want to get started.
Below is an overview of the positions taken by officials on this question following the September 21-22 Federal Open Market Committee meeting. As officials release their positions, it will be revised.
READY TO ROLL ON TAPER:
LORETTA MESTER, PRESIDENT, CLEVELAND FED (non-voter in 2021/voter in 2022), Sept. 24:
“In my view, the economy has met those conditions, and I support starting to dial back our purchases in November and concluding them over the first half of next year.”
ESTHER GEORGE, PRESIDENT, KANSAS CITY FED (non-voter in 2021/voter in 2022), Sept 24:
“In my view, the criteria for substantial further progress have been met, with inflation running well above our target and the unemployment rate at 5.2%, down 1.5 percentage points relative to December. In these circumstances, it is no longer rational to continue adding to our asset portfolio each month. Signaling that we are considering ending our asset purchase program soon seems appropriate.
WAITING ON SEPTEMBER EMPLOYMENT REPORT:
None as of the time of publication.
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