- MarketPulse - https://www.marketpulse.com -

Fed’s Lacker Expects Further Tapering Comments Going Forward

The U.S. Federal Reserve will likely consider further reductions in the pace of bond purchases at coming meetings given the improvement in the labor market conditions, a top Fed official said on Friday.

Richmond Federal Reserve President Jeffrey Lacker said although a recent pick-up in U.S. economic growth was encouraging, he expected the pace of expansion to ease this year to closer to 2 percent.

Fiscal policy, a downshifting in household spending and business reluctance to hire and invest would all help to dampen growth, he said, urging lawmakers to act quickly to fix long-term budget imbalances.

But overall, he said, the Fed’s decision last month to slow the pace of monthly bond buys by $10 billion to $75 billion a month was appropriate given better labor market conditions over the past year.

“It made sense to initiate the process of bringing the program to a close,” he said in remarks prepared for delivery to the Greater Raleigh Chamber of Commerce.

“I expect further reductions in the pace of purchases to be under consideration at upcoming meetings.”

via Reuters [1]

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.

Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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