The Federal Reserve is possibly nearing a point when it might know whether it can perhaps decide to consider incrementally slowing its bond-buying. Maybe. According to someone who doesn't have a vote on the matter.
Two Federal Reserve officials said Thursday they want to press forward with central bank bond buying, although one allowed the Fed is getting closer to having enough information to decide whether it can pare back or stop its most aggressive form of stimulus.
The officials who spoke were Federal Reserve Bank of Atlanta President Dennis Lockhart and Federal Reserve Bank of Chicago leader Charles Evans. They made their comments while participating in a panel discussion at the University of Dayton‘s RISE conference in Ohio. The former isn’t currently a voter on the monetary policy setting Federal Open Market Committee, while the latter is....
“If we see several more months of progress” on jobs, the official said “I think the second half of the year, or in early 2014, it will be appropriate to consider the tapering off or curtailment” of bond buying. Mr. Lockhart said it is unlikely the Fed will raise what are now zero percent short-term rates before 2015.
Fed's Evans and Lockhart Discuss How QE3 Could End [WSJ Real Time Economics blog]