Kansas Fed Chief Urges Fed to Start Bond Tapering

The failure of the Federal Reserve to begin scaling back bond buying at its meeting last week surprised financial markets and could undermine the effectiveness of its policies in the future, a top U.S. central banker said on Thursday.

Kansas City Federal Reserve President Esther George, an outspoken policy hawk who was the sole dissenter at the Fed’s September 17-18 policy committee meeting, said that she had been disappointed by the majority’s decision.

“Delaying action not only allows potential costs to grow, it also has the potential to threaten the credibility and the predictability of future monetary policy actions,” she told the Colorado Economic Forum at a dinner in Denver.

“Policy moves that surprise the market often result in additional volatility.”

via Reuters

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