|
|
发表于 2013-8-7 03:01 PM
|
显示全部楼层
Fed’s Pianalto: Ready to Scale Back QE if Labor Market Stays on Current Path
Article
Comments
Real Time Economics HOME PAGE »
smaller
Larger
facebook
twitter
google plus
linked in
Email
Print
By Victoria McGrane
The president of the Cleveland Federal Reserve Bank said Wednesday she would be ready to scale back the central bank’s $85 billion-per-month bond-buying program if the labor market continues on its current path of improvement.
The official, Sandra Pianalto, didn’t specify a timeframe for when she thought the first reduction in the bond-buying program would be appropriate.
“In my view, there has been meaningful improvement in both current labor market conditions and in the outlook for the labor market” since the Federal Reserve launched its current round of bond buying last September, she said.
“In light of this progress, and if the labor market remains on the stronger path that it has followed since last fall, then I would be prepared to scale back the monthly pace of asset purchases,” she continued.
Ms. Pianalto stressed that her support for a future reduction in the bond-buying program, known as quantitative easing, is not a sign that she believes the labor market has fully recovered. “It is not,” she said, according to a copy of remarks prepared for delivery to the Center for Community Solutions Annual Human Services Institute in Cleveland. The bond-buying program aims to lower longer-term borrowing costs in a bid to spur investment, spending and hiring.
The Fed has said it will continue the program until the labor market shows substantial improvement.
In her speech, Ms. Pianalto reiterated the Fed’s formal policy statement, which says that the central bank expects to keep short-term rates low for a considerable period after the bond-buying program ends. “We intend to hold short-term interest rates low to support economy growth until the economy is closer to full employment, so long as inflation stays well behaved,” she said.
Staff economists at the Cleveland Fed believe so-called maximum employment–the rate at the economy can support without excessive inflation–is 6%, she said. “It is clear that the economy remains well short of maximum employment and that inflation is below our objective,” she said. The Fed’s goal is to have inflation at 2%; it is currently running at 1.3%.
Ms. Pianalto, who doesn’t hold a vote on the Fed’s decision-making committee, said jobs growth has been stronger than she was expecting and the jobless rate, which was 7.4% in July, is more than a half a percent lower than she projected last September. |
评分
-
1
查看全部评分
-
|
狗仔卡
发表于 2013-8-7 01:16 PM
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
