The biggest question facing the Federal Reserve right now is when it will start slowing down its pace of asset purchases, a process known in financial circles as “tapering” or “the taper.”
St. Louis Fed President James Bullard said the central bank should wait for more economic indicators before deciding on whether or not to taper its asset purchases in a speech today.
Bullard told a crowd in Boston that “it is important to wait to see if better macroeconomic outcomes materialise in the months and quarters ahead.”
Many have slated September as the time when the Fed would begin to slow down its $US85 billion-a-month easing program, but Bullard’s comments suggest he may not support that timeline.
You can read a summary in this press release.