The best move for the Federal Reserve given improving jobs numbers but slow inflation readings might be a small December taper, an official said Monday in key comments ahead of next week’s meeting.
“A small taper might recognize labor market improvement while still providing the [Fed] the opportunity to carefully monitor inflation during the first half of 2014,” James Bullard, the president of the St. Louis Federal Reserve Bank, said in a speech to the CFA Society St. Louis.
“Should inflation not return toward target, the Fed could pause tapering at subsequent meetings,” he added.
Bullard was one of three Fed speakers on Monday and the only who has a vote this year. The speakers mark the last official comments from the central bank until after the Dec. 17-18 policy committee meeting.
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