Fed Officials Assess Trimming QE3

One top Federal Reserve official said on Wednesday he was open-minded about reducing stimulus this month, as investors largely expect the central bank to do, while another policymaker said the U.S. central bank should actually do more for the economy.

The comments by San Francisco Fed President John Williams and Narayana Kocherlakota, his counterpart in Minneapolis, reflect the uncertainty that lingers over financial markets two weeks before the Fed's 19 policymakers meet to decide whether to adjust a $85-billion monthly bond-buying program.

The quantitative easing program, known as QE3 because it is the Fed's third such massive effort to boost growth and employment since the Great Recession, was launched a year ago. U.S. unemployment was 7.4 percent in July, down from 8.2 percent a year earlier, suggesting to many economists that the Fed is ready to reduce the pace of buying.

Reuters

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has nearly 20 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Living in Melbourne, Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee