Fed's Evans: reasonable to continue to taper unless get 'really offbeat' data

CORALVILLE, Iowa Wed Jan 15, 2014 2:00pm EST

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CORALVILLE, Iowa Jan 15 (Reuters) - Chicago Federal Reserve Bank president Charles Evans, one of the Fed's most dovish policymakers, told reporters he expects the U.S. central bank to continue to taper its massive bond-buying at a measured pace of perhaps $10 billion at each meeting, unless data comes in unexpectedly weak.

"At the moment the plan seems quite reasonable," he told reporters after a speech here. Bond-buying will likely continue until after the first half of the year, he said, although if data comes in better than expected, the Fed could taper the program more aggressively.

Asked if the Fed could pause its program of tapering should data weaken, Evans suggested that was unlikely, because the Fed has determined to move away from bond-buying and toward forward guidance on rate policy as its main tool.

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Comments (1)
PeterCatranis wrote:
Now that Evans is on board for tapering if I didn’t know better I’d think the Fed is developing a conscience.

One day I hope the Fed can explain to everyone how stripping savers of trillions of dollars in interest income and forever removing it from the free market economy to save the US Treasury the same in debt service costs stimulated the economy. Adding insult to injury the Fed funds rate hit a all time record low while the prime lending rate remained unchanged at 3.25% since 2009.

Guess we just had it wrong it wasn’t economic stimulus for the US taxpayer or saver it was economic stimulus for the banks and US Treasury with the taxpayer/saver once again picking up the tab.

Regards,
Peter Catranis

Jan 15, 2014 3:01pm EST  --  Report as abuse
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