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Fed could trim bond-buying more sharply in future: Plosser
January 4, 2014 / 11:37 PM / 4 years ago

Fed could trim bond-buying more sharply in future: Plosser

PHILADELPHIA (Reuters) - The Federal Reserve could well consider cutting its bond-buying by more than a $10 billion monthly increment in the future, Philadelphia Fed President Charles Plosser said on Saturday, floating $25 billion as a hypothetical amount.

Philadelphia Federal Reserve President Charles Plosser speaks at an Economics21 event in New York, March 25, 2011 file photo. REUTERS/Brendan McDermid

The U.S. central bank trimmed its quantitative easing program to $75 billion per month, from $85 billion, at a much anticipated policy meeting last month, reducing its extraordinary support for the U.S. economy.

“It’s good that we did it,” Plosser, a hawkish Fed official, told reporters on the sidelines of a conference. But “if the economy continues to grow and strengthen I think that there’s no reason why we shouldn’t want to consider speeding the process up if we can,” he said.

“I have no problem with gradually unwinding it, but my preference would be to move a little quicker and end it sooner rather than later,” Plosser added.

Reporting by Jonathan Spicer; Editing by Dan Grebler

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