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14 Aug 2013
Fed’s Bullard suggests wait-and-see approach for tapering
FXstreet.com (New York) - As the calendar steadfastly approaches the month of September, speculation has run rampant as to when and more importantly if the Federal Reserve will begin its initiative to scale back bond buying purchases, now tallied at $85 billion per month.
Ultimately however, the Fed needs to ascertain more evidence that the US economy is tangibly improving and that inflation is heading higher – now at historic lows – before deciding to taper its massive bond buying program, a senior U.S. central bank official reported on Wednesday.
"The committee still needs to see more data on the macroeconomic performance for the second half of 2013 before making a judgment on this matter," St. Louis Federal Reserve President James Bullard said in prepared remarks. The remarks largely echoed a speech he gave earlier this month in Boston.
Moreover, he also said the Fed chairman ought give a press conference following every policy meeting, instead of once a quarter as is currently the practice. The greater frequency would prevent policy decisions being held up or brought forward to coincide with a press conference, to give the chairman a chance to explain the decision.
Ultimately however, the Fed needs to ascertain more evidence that the US economy is tangibly improving and that inflation is heading higher – now at historic lows – before deciding to taper its massive bond buying program, a senior U.S. central bank official reported on Wednesday.
"The committee still needs to see more data on the macroeconomic performance for the second half of 2013 before making a judgment on this matter," St. Louis Federal Reserve President James Bullard said in prepared remarks. The remarks largely echoed a speech he gave earlier this month in Boston.
Moreover, he also said the Fed chairman ought give a press conference following every policy meeting, instead of once a quarter as is currently the practice. The greater frequency would prevent policy decisions being held up or brought forward to coincide with a press conference, to give the chairman a chance to explain the decision.