Tapering is “on the table” for the next FOMC meeting, St. Louis Fed President James Bullard said today at
Bloomberg’s “The Year Ahead: 2014” conference.
If the Fed sees a strong November jobs report, the central bank might decide to taper its $US85 billion a month asset purchasing program at its next meeting. The question, Bullard said, is whether the jobs pickup is sustainable.
Bullard said that QE is working as effectively as it ever has, adding that he didn’t buy the argument that QE has diminishing returns.
In terms of his overall economic outlook, Bullard said that things are looking better, with GDP “revised up some.”