Kansas Fed President Agrees First Taper Will Be a Token

The scale of the first reduction in asset purchases by the Federal Reserve is not as important as the clarity with which it communicates about where its policies are heading, a top U.S. central banker said on Thursday.

“I don’t know that the initial amount really matters in the context of its impact,” Kansas City Federal Reserve President Esther George told an audience in Denver after a speech.

“What is important, though, is that we will have to be clear, once we start, where we will be going with the end of the program,” she said.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza