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MNI: Fed Could Soon Taper QT But Halt Further Off- Ex-Staffers

(MNI) WASHINGTON

Debate over QT taper to begin soon, but Fed officials are still comfortable that reserves are ample.

The Federal Reserve could soon start to slow the pace of quantitative tightening, but officials will aim to press on with some form of balance sheet reduction for as long as bank reserves are ample and there are no signs of a hard landing, former New York Fed staffers told MNI.

Policymakers put markets on notice this month after minutes to the central bank's December meeting showed several FOMC members wanted to "begin to discuss the technical factors that would guide a decision to slow the pace of runoff well before such a decision was reached."

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The Federal Reserve could soon start to slow the pace of quantitative tightening, but officials will aim to press on with some form of balance sheet reduction for as long as bank reserves are ample and there are no signs of a hard landing, former New York Fed staffers told MNI.

Policymakers put markets on notice this month after minutes to the central bank's December meeting showed several FOMC members wanted to "begin to discuss the technical factors that would guide a decision to slow the pace of runoff well before such a decision was reached."

Keep reading...Show less