Two Federal Reserve Board officials said the day was approaching for the US central bank to withdraw bond purchases.
Dallas Fed Robert Kaplan and St. Louis Fed James Bullard did not specify when the central bank would act jointly and virtually on Monday, but it is not yet time for the central bank to reconsider its strong support for the economy. If you haven’t arrived, you’re approaching.
Kaplan reiterated his view for some time, saying: “Risks around the recovery process” to “avoid the need to go off the road” with more rapid changes in monetary policy.
“I think the debate is open and appropriate,” said Bullard, who is considering when the Fed will withdraw when it comes to buying assets. “The Commission has just begun to talk about tapering and it will take time to organize it,” he added, adding that the process leading to such a tapering decision will not take place very quickly. It was.
At a Federal Open Market Committee meeting last week, Fed officials kept their short-term interest rate targets near zero since March 2020, with $ 80 billion in Treasury bills and $ 40 billion in mortgage-backed securities per month. I pushed forward with the purchase.
Two Fed officials say they are ready to weigh the stimulus pullback
Source link Two Fed officials say they are ready to weigh the stimulus pullback