Powell Says BoC Approach Not High on Priority List

Q: Does new guidance preclude the possibility that you could at some point lengthen maturities while at the same time tapering monthly purchases? (i.e. The Bank of Canada option)

• A: We wouldn't want to talk about hypothetical situations... We feel our overall stance is appropriate for now.
• "Any time we feel like the economy use stronger accommodation, we would be prepared to provide it. But right now we are providing a great deal. We happen to think it's the right amount.
• "I think you are referring to the idea of maintaining the duration, but reducing the quantity, which is sort of what the bank of Canada did. That is something we talked about in the last meeting and was addressed in the minutes. I would say the reviews on that were mixed. Some thought it was a great idea, some didn't. I wouldn't say that is high on our list of possibilities."