Decreased Unemployment Rate: Fed President Recommends Taper
The Federal Reserve policymakers have been debating the U.S. bond-buying program for a while and may choose to begin reducing it sometime in the next few months from it’s current level of $85 billion. Fed President Charles Plosser told CNBC Friday that while he doesn’t like to get too excited over a single month’s numbers, November’s job report was a good indicator of the U.S.’s economic improvement.
“It’s pretty positive clearly. We continue to make solid progress,” said Plosser to CNBC, referring to the decline of unemployment, from 7.3 percent unemployment in October to 7.0 percent in November. As such, he notes that it may be a good point in time to “gracefully exit” quantitative easing.
“It is in a good direction,” said Plosser in the interview, “You’ve got a pretty stable positive rate of growth in jobs right now.” Plosser told CNBC that he’s believes leaving the bond purchasing program behind would be a smart move. “I don’t think it’s doing very much good for us. It has a lot of unintended consequences and risk for the economy down the road.”