MNI BRIEF: Fed's Harker Wants QE Taper Talk Sooner Not Later

Philadelphia Fed President Patrick Harker said Friday a discussion to begin slowing the central bank's asset purchase program should begin sooner rather than later, with discussions including an MBS taper.

"I am of the camp that sooner rather than later we should start talking about tapering, and clearly part of that conversation will be the MBS taper," Harker said. Earlier this week MNI reported the Fed is set to think through larger reductions of mortgage bonds than Treasuries as it considers taper options.

"We need to follow the playbook we had after the Great Recession, that is the start a taper of the bond purchases, slowly remove accommodation, carefully, methodically, I would even argue boringly, so that we don't surprise the market," he said at a Washington Post webinar. There are also concerns over the housing market because prices are increasing to record highs and "for low income and moderate income individuals and families, they're being shut out of these communities right now."