Fed’s Daly says point to cut bond purchases could be reached later this year

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Jun 22 (Reuters) – The United States central bank may be in a position to begin reducing its extraordinary support for the country’s economy later this year or early next, according to the president of the San Francisco Federal Reserve. , Mary Daly.

“I am optimistic about the recovery,” Daly told reporters Tuesday after a talk on the risks posed by climate change at the Peterson Institute.

The Fed’s “Additional Substantial Progress” toward full employment and the 2% inflation target, the agency’s threshold set in December to reduce its monthly asset purchases by $ 120 billion, is “within our line of sight. “I think we may even get there sometime late this year, early next year.”

“We have not reached that point yet, but it is appropriate to start preparing for when we reach that threshold,” he said.

He added that, on the contrary, talking about any change in interest rates is not even on the table, and the Fed must maintain a “stable” course in terms of monetary policy and not respond to next months of “volatile” data on the labor market and inflation.

(Report by Ann Saphir, Edited in Spanish by Manuel Farías)

Article source: https://es-us.finanzas.yahoo.com/

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