Powell Says There is Broad Support on FOMC For Taper Plan

Q: Rationale for FOMC members who want to taper sooner?

- A: There is broad support on the committee for this plan, both timing and the pace of the taper. This was a unanimous vote today and broad support for this approach. There are some who would prefer to gone sooner - they made their arguments publicly for financial stability concerns. Others can make their own arguments.

• It will put taper conclusion somewhere around the middle of next year which seems appropriate. Asset purchases were very important in the early stages of the crisis to restoring market function. Now we are in a situation where they still have a use, but it's time for us to begin to taper them.
• Their usefulness is much less as a tool than it was at the very beginning. This leaves the question of rate increases ahead which is really where the framework deals with rate increases. We think it's the appropriate way to go. Again, broad support on the committee.