AUSTIN, April 16 (Reuters) - The Federal Reserve will continue to trim its massive bond-buying program and end it this fall, a top Fed official predicted on Wednesday, adding that interest rates will stay near zero until at least then and probably some time beyond.
“I cannot foresee any reason to not continue to reduce it to zero,” Dallas Federal Reserve Bank President Richard Fisher told reporters after an event.
He said the current pace of reductions to the program, known as QE3 because it is the Fed’s third round of quantitative easing, put it on track to an end this coming fall.
As for when rates will rise, he was more circumspect.
“We’ll keep at it I‘m sure in discussions as to how we can provide as much insight so that markets can discount our future activity, but it will be some time before we move the base rate,” he said. “I would not favor increasing the base rate until at least we are done with that process,” he added, referring to reductions in QE3.
Reporting by Ann Saphir; Editing by Meredith Mazzilli