Fed's Dudley stands by June framework for reducing QE
NEW YORK, Sept 23
NEW YORK, Sept 23 (Reuters) - The Federal Reserve still aims to reduce the pace of its asset purchases later this year and to halt the quantitative easing program altogether by mid-2014 as long as the U.S. economy keeps improving, an influential central bank official said on Monday.
Referring to the timeline that Fed Chairman Ben Bernanke articulated in June, New York Fed President William Dudley said the framework is "still very much intact." He noted that, at the time, Bernanke did not specify that the first reduction in bond-buying would come at the Fed's policy meeting last week.
Investors were surprised last week when the Fed decided not to reduce the asset purchases from the current $85-billion monthly pace, setting off a global stock rally. Many thought Bernanke's comments, and signals from other Fed policymakers since, suggested the policy change would come in September.