LOS ANGELES, July 16 The Federal Reserve should reduce its reinvestments of maturing securities in October to signal its confidence in the recovery and pave the way for rate hikes, a top Fed official said on Wednesday.
"It would be a very tangible way to start paring back and sending a signal that we are confident that the economy is improving -- now, I may be more confident that the economy is improving than some of my colleagues, but it's pretty hard to refute the data right now," Dallas Fed President Richard Fisher told reporters after a speech at the University of Southern California. "And then once we are really sure, and again, we have to anticipate, as I said, it's like duck-hunting, you have to shoot ahead of the mallard, you don't shoot where it is...that's when we talk about rates and short-term rates."
Fisher is a voter this year on Fed policy. (Reporting by Ann Saphir; Editing by Chizu Nomiyama)