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)