The U.S. Federal Reserve could begin cutting back on its massive bond-buying program this summer if the economy continues to pick up steam, a top Fed official said on Wednesday.
The Fed is buying $85 billion in Treasuries and mortgage-backed securities each month to push down long-term interest rates and encourage hiring, and has vowed to continue the program until there is substantial improvement in the labor market outlook.
“I expect we will meet the test for substantial improvement in the outlook for the labor market by this summer. If that happens, we could start tapering our purchases then,” San Francisco Federal Reserve Bank President John Williams said in remarks prepared for delivery to Town Hall Los Angeles. “If all goes as hoped, we could end the purchase program sometime late this year.”
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.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015