Atlanta Fed Head: Possible to Start QE Tapering in October, Provided That Employment Gains Remain High
Atlanta Federal Reserve Bank chairman Rafael Bostic said in an interview with Reuters on Friday that; beginning to phase out the bond buying program in October would be smart for the Fed if US employment extends current positive trends,.
The Fed is now buying $ 120 billion in government bonds and mortgage-backed securities every month to support economic recovery after the downturn triggered by the pandemic.
The head of the Federal Reserve Bank of Atlanta will "feel comfortable" if the central bank begins to reduce the pace of bond purchases in October, provided that employment gains in August will remain at the July level, when it was about 1 million.
The Fed may announce plans to phase out emergency stimulus following its next meeting on September 21-22.
Bostic, who has voting rights on the Federal Open Market Committee (FOMC) this year, said he could support plans to halt asset purchases entirely by the end of the first quarter of 2022.
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