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Fed's George: Fed exit could cause bond yields to spike
May 10, 2013 / 7:41 PM / in 5 years

Fed's George: Fed exit could cause bond yields to spike

JACKSON, Wyo., May 10 (Reuters) - The U.S. Federal Reserve faces a tricky challenge in communicating its exit from ultra-easy monetary policy if it wants to avoid spooking financial markets and hurting the economy, a senior U.S. central banker said on Friday.

“My concern is we do that in a fashion that does not create sharp increases in rates, backing up mortgage rates, when we announce that we’re going to stop bond purchases (or) we are going to adjust those in some way,” Kansas City Fed President Esther George told the Wyoming Business Alliance.

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