Federal Reserve: Time to Cut Back on Bond Purchasing?
Post-shutdown, the U.S. economy has been left in shadow — it’s difficult to fully make out the details. The hazy future of our country is most salient to the Federal Reserve’s decision on whether to cut back on its immense bond purchases.
“We need more information about how the economy is proceeding, how we are going to weather the most recent government shutdown. I think the most likely outcome is one where we continue to go for a couple of meetings to assess this,” Fed President Charles Evans of the Chicago Federal Reserve Bank told Reuters. Meetings occur every six weeks for the Fed, meaning one meeting will be at the end of October, and one mid-December — if Evans is correct, even an assessment of the situation could go for months.
“It would be not worth your while for me to speculate about whether it’s going to be in December, January, March. We are going to have to see how things are going,” said Evans. He did note though, that for him personally, “I believe this program should continue until we are confident that there has been a sustainable improvement in the labor market. It is not yet time to remove accommodation.”