More and more Fed officials believe that the start of preparations to discuss the reduction of QE.
The Federal Reserve Board (Fed) a number of officials said on the 21st, with the new crown pneumonia (Chinese communist virus) epidemic caused by the economic crisis into the late stages, but also represents a step closer to the Fed began to scale back the original support for monetary stimulus measures, but they are reluctant to predict when.
Some economists speculate that the Fed will announce its readiness to begin discussions at the end of summer and begin tapering its bond purchases early next year.
In an online conference, Bostick, president of the Federal Reserve Bank of Atlanta, said of the current adjustment in monetary policy, “It has not yet reached the realm of discussion.” But he said that the U.S. economy is now better than in January, which means that “is approaching that point”, that is, the economic recovery reached the Fed hopes to see more substantial progress can be slowed bond purchase stimulus measures.
Richmond United Bank President Barkin also put forward similar views on the same occasion: “The economy has progress since January? The answer is yes”, the economic rebound “let us further reach more substantial progress”, towards the threshold of the central bank to start changing the policy line.
The two officials, both of whom have voting rights on the Federal Open Market Operations Committee (FOMC) this year, shared the same views in the seminar, which was hosted by the Federal Reserve Bank of Atlanta. the minutes of the Fed’s April meeting, released last week, already mentioned that “many participants believe that if the economy continues to make substantial progress toward the Committee’s goals, it may be appropriate at some point in the next meeting to Start discussing the pace of asset purchases”.
The Wall Street Journal reported that, in the eyes of many market participants, this is a step toward tapering the door of bond purchases. Some economists believe that the Fed’s announcement will come in late summer this year, while the actual tapering of purchases of mortgage-backed securities and U.S. bonds will begin early next year.
This year in the FOMC does not have the right to vote in the Dallas Associated Bank President Kaplan 21 also reiterated that he is ready to discuss tapering of debt purchases. He said, “I am very confident that the Fed will respond correctly.” “Whether from a risk management perspective, my level of tolerance, or based on what I see us doing, I think it’s appropriate to do it sooner rather than later.”
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