U.S. Markets

Fed's Fischer says important that QE reversed

Vice Chair of the U.S. Federal Reserve System Stanley Fischer arrives to hear Governor of the Bank of England Mark Carney delivering the Michel Camdessus Central Banking Lecture at the International Monetary Fund in Washington, U.S., September 18, 2017. REUTERS/Joshua Roberts

LONDON (Reuters) - U.S. Federal Reserve Vice-Chairman Stanley Fischer said it was important for the central bank to reverse its massive bond buying program, given that it had previously said they were a temporary measure.

“The importance of the shift that is now underway, of reducing the size of the Fed’s balance sheet (is that) I think it’s very important that we said these are temporary measures, that they be temporary measures,” he told a conference on central bank independence hosted by the Bank of England.

Fischer also said he thought the Fed was communicating its policy intentions and its commitment to tighten policy better now than in 2013, when concern about reduced stimulus led to a jump in bond yields known as the ‘taper tantrum’.

Reporting by David Milliken; Editing by William Schomberg