Fed’s Rosengren: Tapering Process May Last For Years

The Federal Reserve ‘s easy policy stance, including its bond-buying program, could last for “several years” to make sure that the economy is on track for solid growth and moderate inflation, a Fed official said on Wednesday.

“If the economy evolves as expected, policy should in my view include only a very slow removal of accommodation over the next several years,” Eric Rosengren, president of the Boston Federal Reserve Bank, said in a speech to a business group in Burlington, Vt.

Rosengren’s timetable appears much longer than the mid-2014 termination date for the bond-buying program suggested by Fed Chairman Ben Bernanke earlier this year.

Rosengren, one of the more dovish Fed officials and a voting member this year, said he was a strong supporter of the Fed’s decision not to start tapering at its meeting last month.

“It would have been premature to begin reducing the rate of Fed asset purchases,” he said.

MarketWatch

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