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MNI: Fed’s Bowman Considered Waiting Longer To Taper QT

(MNI) WASHINGTON

Bowman wants to ensure officials communicate eventual end of QT does not mean rate cuts are forthcoming.

Federal Reserve Governor Michelle Bowman said Tuesday she was one of the few officials who thought it might be appropriate to wait longer before tapering QT or taper more gradually.

“I would have supported either waiting to slow the pace of balance sheet runoff to a later point in time or implementing a more tapered slowing in the pace of runoff,” she said in a wide-ranging speech about the balance sheet delivered at the Bank of Japan. Minutes from the Fed's May meeting indicated a "few" FOMC members felt that way.

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Federal Reserve Governor Michelle Bowman said Tuesday she was one of the few officials who thought it might be appropriate to wait longer before tapering QT or taper more gradually.

“I would have supported either waiting to slow the pace of balance sheet runoff to a later point in time or implementing a more tapered slowing in the pace of runoff,” she said in a wide-ranging speech about the balance sheet delivered at the Bank of Japan. Minutes from the Fed's May meeting indicated a "few" FOMC members felt that way.

Keep reading...Show less