FRANKFURT, Sept 26 The Federal Reserve should
make itself more predictable over scaling back its massive bond
buying campaign, a top U.S. central banker said on Thursday,
acknowledging that it had confused markets by not tapering at
its meeting last week.
Fed Governor Jeremy Stein said he would have been
comfortable starting to reduce asset purchases at the Sept.
17-18 meeting, and that the decision to keep buying at an $85
billion monthly pace had been, for him, a "close call".
"But whether we start in September or a bit later is not in
itself the key issue - the difference in the overall amount of
securities we buy will be modest," he told a monetary policy
conference in Frankfurt.
"What is much more important is doing everything we can to
ensure that this difficult transition is implemented in as
transparent and predictable a manner as possible. On this front,
I think it is safe to say that there may be room for
improvement," he said in prepared remarks.