Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fed's Harker says important to talk about tapering sooner rather than later

Economy May 21, 2021 01:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Jonnelle Marte

(Reuters) -Federal Reserve officials should start talking about the best way to reduce their asset purchases "sooner rather than later," Philadelphia Fed Bank President Patrick Harker said on Friday.

The U.S. central bank will communicate its plans for slowing its purchases of Treasury bonds and mortgage-backed securities well in advance of it happening, Harker said during a virtual conversation organized by the Washington Post.

"It is something that, in my mind, we should start to have a conversation about sooner rather than later," Harker said.

The policymaker said unwinding the central bank's asset purchases from the current pace of $120 billion a month would be the "first step" in removing the support the Fed is offering the economy. If the recovery continues to progress, officials would then look at raising interest rates at the "appropriate time."

A "number" of Fed officials appeared ready to consider changes to monetary policy based on a continued strong economic recovery, according to minutes of the U.S. central bank's April meeting. But that view may have suffered a blow this month with the release of data showing job growth was anemic in April.

Harker said he is looking for "continued strength" in the labor market before the Fed would start the process of removing accommodation. He said the U.S. economy may need to add up to 11 million jobs to close the hole left by the pandemic, including the 8 million jobs lost and the previous job growth cut off by the crisis.

The policymaker also said he wants to see inflation move above the Fed's 2% target and averaging 2% over time, with inflation expectations anchored at 2%, before it would be "appropriate" to talk about tapering.

 

Fed's Harker says important to talk about tapering sooner rather than later
 

Related Articles

Top 5 Things to Watch in Markets in the Week Ahead
Top 5 Things to Watch in Markets in the Week Ahead By Investing.com - Jun 26, 2022 1

By Noreen Burke Investing.com -- The European Central Bank will hold its annual retreat in Portugal, where President Christine Lagarde, along with Federal Reserve Chair Jerome...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Chidera David
Chidera David May 21, 2021 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$6000
Rahul Singh
Rahul Singh May 21, 2021 1:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bullion Can touched Agian $1700
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email