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MNI BRIEF: Fed To Discuss Better QE Communications- Quarles

(MNI) WASHINGTON
(MNI)

The Federal Reserve will discuss the path of its asset purchases at upcoming meetings because markets appear confused about future plans, Vice Chair Randal Quarles said Wednesday.

"We are sensitive as well to the point that there is confusion, at least on clarity, about how we are thinking about asset purchases going forward. As the FOMC meets over the next few meetings I expect that we will have discussions about our communication policy around asset purchases," Quarles said when asked about tapering in 2021. Quarles said QE has been an effective tool that will be used more in an era with interest rates more likely to be around zero.

The Fed's 13(3) facilities will stay in place until the crisis is over, he said. "Having these facilities out there and ready to take up more will be valuable," serving as a backstop in case Covid takes an adverse turn, he said.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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