U.S. stocks closed higher on on Monday, with the S&P 500 at a record, as Wall Street weighed when the Federal Reserve would begin curbing its monetary stimulus and tracked budget negotiations on Capitol Hill.
Federal Reserve Bank of Richmond President Jeffrey Lacker on Monday said he expects a taper discussion at next week’s Federal Open Market Committee meeting, while St. Louis Fed President James Bullard said positive trends in the labor market make cuts to the Fed’s $85 billion in monthly bond purchases more likely. Speaking in Chicago, Federal Reserve Bank of Dallas President Richard Fisher reiterated his view that the Fed should start cutting back on its bond purchases “at the earliest opportunity.”
The speeches came before Fed officials go into their “blackout” period before the two-day FOMC gathering that starts next Tuesday.
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