4 Nov 2013
Fed's Bullard: QE dependent on economic data
FXstreet.com (Barcelona) - St. Louis Fed chief James Bullard reiterated in an interview for CNBC on Monday that the US central bank's reduction of asset purchases is dependent on economic data, which is scrutinized every month by the FOMC.
The Fed policymakers note an improvement on the US labor market but at the same time acknowledge the risks connected with the persistently low inflation, Bullard said. They would like to see it climbing to 2% before making the decision on the QE taper.
"Eighty-five billion dollars is a torrid pace, I will give you that. And a trillion dollars a year is a torrid pace," Bullard admitted. "I'd rather get out it if we can, but I'd like to meet our goals."
The Fed head added that by delaying the QE reduction at the last two monetary policy meetings, the US central bank gained credibility, as it proved that the move is dependent on data.
Furthermore, Bullard assured that the impact of the US government shutdown on economic growth should not bee too big and that the upcoming shift in the Federal Reserve's leadership should not weigh on the FOMC's policy decisions.
The Fed policymakers note an improvement on the US labor market but at the same time acknowledge the risks connected with the persistently low inflation, Bullard said. They would like to see it climbing to 2% before making the decision on the QE taper.
"Eighty-five billion dollars is a torrid pace, I will give you that. And a trillion dollars a year is a torrid pace," Bullard admitted. "I'd rather get out it if we can, but I'd like to meet our goals."
The Fed head added that by delaying the QE reduction at the last two monetary policy meetings, the US central bank gained credibility, as it proved that the move is dependent on data.
Furthermore, Bullard assured that the impact of the US government shutdown on economic growth should not bee too big and that the upcoming shift in the Federal Reserve's leadership should not weigh on the FOMC's policy decisions.