Fed's George favors cutting bond buys to $70 bln/month in Sept
OMAHA, Neb., Sept 6
OMAHA, Neb., Sept 6 (Reuters) - The Federal Reserve should begin reducing monthly bond purchases at a meeting later this month in order to set monetary policy on a course for "gradual and predictable" normalization, a top U.S. central banker said on Friday.
Kansas City Fed President Esther George, a consistent hawk who has argued for a tapering in bond purchases all year, also said policymakers should consider enhancing communication over how quickly the Fed will start raising interest rates, currently held near zero.
"An appropriate next step toward normalizing monetary policy could be to reduce the pace of purchases from $85 billion to something around $70 billion per month," George told a luncheon of business and community leaders.
She also said that remaining Fed purchases should be split evenly between Treasuries and mortgage-backed securities.
"A decision to reduce the Federal Reserve's monthly asset purchases would be appropriate at that (Sept. 17-18) meeting, as would clearer guidance about the path forward. It is time to begin a gradual - and predictable - normalization of policy," she said.
- Putin dissolves state news agency, tightens grip on Russia media
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Thai PM calls snap election, protesters want power now |
- Record cold, ice grip U.S.; more snow to blanket East
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'