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6 Aug 2013
Fed's Lockhart: QE taper could start in October
FXstreet.com (Barcelona) - The Atlanta Fed chief Dennis Lockhart has signalized today that the winding down of the bond-buying program could start in October. He argued that the latest NFP report was satisfying enough and said that he would keep track of economic data releases in the next few weeks for signs of further recovery.
In the opinion of Lockhart an increase in hiring at a pace of 180-200K per month, as well as a pickup in growth, would be a good reason for the Fed to start tapering the QE program. However, should the economy show signs of just “moping along” the reduction of asset purchases would not be a "foregone conclusion."
Dennis Lockhart is considered to be a moderate FOMC member and his view is often close to the consensus outlook. He is a non-voting member this year.
In the opinion of Lockhart an increase in hiring at a pace of 180-200K per month, as well as a pickup in growth, would be a good reason for the Fed to start tapering the QE program. However, should the economy show signs of just “moping along” the reduction of asset purchases would not be a "foregone conclusion."
Dennis Lockhart is considered to be a moderate FOMC member and his view is often close to the consensus outlook. He is a non-voting member this year.