Fed should go slowly when time comes to reduce stimulus: Powell
SAN FRANCISCO (Reuters) - The Federal Reserve should telegraph its policy intentions clearly and move slowly when it comes time to reduce its massive stimulus, a top Fed official said on Monday.
"What it's reasonable to expect us to do is to be transparent and to move gradually when it is time to withdraw accommodation, or even to begin reducing the pace at which we add accommodation, and go slowly in doing that and also that we hold to our obligation to only do that as demand does strengthen in the United States," Fed Board Governor Jerome Powell told the Asia Economic Policy Conference. "Those are the things that we can do and we must do, should do."
Powell's remarks, in answer to an audience question, underscored the U.S. central bank's sensitivity to recent sharp market reaction to even the potential for the Fed to change its current super-easy monetary policy.
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