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1 Nov 2013
Fed's Bullard: QE taper prospects tied to employment data
FXstreet.com (Barcelona) - St. Louis Fed President James Bullard said on Friday that the possibilities of a QE taper would increase with better labor market performance, but only if the gains in employment were sustainable.
Bullard emphasized that the decision on whether to start reducing the pace of monthly asset purchases is tied to data, noting at the same time that the unemployment rate and the Nonfarm Payrolls number have improved since September 2012. He added that he expects growth to accelerate next year, as fiscal policy stabilizes.
“This year seems to be characterized by less macroeconomic uncertainty compared to previous years,” Bullard said. “This bodes well for U.S. macroeconomic prospects in 2013.”
Furthermore, Bullard assured that the Fed is conscious that keeping rates low could result in distorted asset prices, but he assured that he did not see bubbles forming in any sector.
The Fed head was also upbeat on the global economy´s prospects. He expressed confidence that the Eurozone would continue recovering in 2014, while growth in emerging market economies improves.
Bullard emphasized that the decision on whether to start reducing the pace of monthly asset purchases is tied to data, noting at the same time that the unemployment rate and the Nonfarm Payrolls number have improved since September 2012. He added that he expects growth to accelerate next year, as fiscal policy stabilizes.
“This year seems to be characterized by less macroeconomic uncertainty compared to previous years,” Bullard said. “This bodes well for U.S. macroeconomic prospects in 2013.”
Furthermore, Bullard assured that the Fed is conscious that keeping rates low could result in distorted asset prices, but he assured that he did not see bubbles forming in any sector.
The Fed head was also upbeat on the global economy´s prospects. He expressed confidence that the Eurozone would continue recovering in 2014, while growth in emerging market economies improves.