Fed's Williams says policy normalization dependent on data, not calendar
GOTHENBURG, Sweden (Reuters) - Normalization of monetary policy in the United States will follow the development of the economy, not a set time plan, San Francisco Federal Reserve Bank President John Williams said in Sweden on Tuesday.
"Any normalization of monetary policy is not set according to a calendar plan, but in fact is completely data contingent, is forecast contingent," Williams said in a roundtable discussion.
The Fed is buying $85 billion in Treasuries and mortgage-backed securities each month to push down long-term interest rates and encourage hiring.
But Chairman Ben Bernanke said in June the Fed expected to trim purchases later this year, depending on how the economy progresses, shaking markets worried the withdrawal of easy money will undermine recovery.