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MNI BRIEF: Fed's Mester Prefers To Taper QE in 2022

(MNI)

Federal Reserve Bank of Cleveland President Loretta Mester said Tuesday she expects to begin winding down asset purchases starting next year, but a stronger-than-expected recovery could pull that timeline forward.

"I'd like us to start to taper asset purchases next year but it's going to depend on the economy," she told reporters on a call.

"My outlook is relatively slow or weak in the first part of the year and a pick-up, conditional on vaccinations, in the second half of the year. If things go as I expect, then I'm happy with the way policy is calibrated right now. I wouldn't want to see us changing our accommodation in the first half of the year."

"That said, we could see a stronger second half than we're anticipating, and that could pull things forward," she said, assuming most Americans will be vaccinated by the third quarter.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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