Federal Reserve Bank of Atlanta President Dennis Lockhart, who has backed the Fed’s $85 billion in monthly bond purchases, said policy makers may start to slow buying at any of their next few meetings amid “uneven performance” by the economy.
“The first adjustments to asset purchases, when they occur, should be the beginning of a process with steps that will be determined as later information arrives and certainty about the direction of the economy accumulates,” Lockhart, who doesn’t vote on monetary policy this year, said today in a speech in Atlanta. “A decision to proceed — whether it is in September, October, or December — ought to be thought of as a cautious first step.”
Fed regional bank officials last week indicated greater willingness to reduce bond buying. Chicago Fed President Charles Evans, who votes on policy this year, said he would not rule out a move at the Sept. 17-18 meeting, while Cleveland Fed President Sandra Pianalto said economic progress makes her “prepared to scale back the monthly pace of asset purchases.” She doesn’t vote on policy in 2013.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.