Fed Taper: Should It Have Been Bigger?

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Federal Reserve Bank of Dallas President Richard Fisher didn’t get to vote on the taper this year — he’ll have his say in 2014 — but he would have liked an even larger cut to the U.S. Federal Reserve’s $85 billion bond-buying stimulus program, Bloomberg reports. Last week, the Fed finally came to a decision on the initial taper schedule and amount, settling on a reduction of $10 billion per month.

“The market could have digested [$20 billion],” Fisher said to Fox Business Network on Monday, per Bloomberg. He is also insistent that there is not a stock market bubble as a result of the stimulus program, noting that the current economic climate is a good for a taper. “We’re on an upward trajectory and that’s what’s important,” he said.

Jeffrey Lacker, the Richmond Federal Reserve president, told CNBC that he expects the target federal fund rate to reach 2 percent in two years’ time. “I put early 2015 when I think the fund rates will lift off, but that’s something that could change a lot, one way or the other,” he said, noting that his was one of the three highest estimates given.

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