Fed policymakers hone in on November taper timeline

0
13

Oct 12 (Reuters) – Three U.S. Federal Reserve policymakers on Tuesday said the economy has healed enough for the central bank to begin to withdraw its crisis-era support, cementing expectations the Fed will start to taper its monthly bond purchases as soon as next month.

“I myself believe that the ‘substantial further progress’ standard has more than been met with regard to our price-stability mandate and has all but been met with regard to our employment mandate,” Fed Vice Chair Richard Clarida told the Institute of International Finance virtual annual meeting.

He was referring to the Fed’s promise to keep buying $120 billion of Treasuries and mortgage-backed securities each month until the economy had met that standard on both its mandates.

Fed policymakers at their last meeting agreed that tapering “may soon be warranted” and would likely conclude in the middle of next year, he said.

Clarida’s upbeat assessment likely echoes the sentiments of his boss,…

Read more…