Federal Reserve Bank of St. Louis President James Bullard said he favors reducing the central bank’s monthly asset purchases by $10 billion to $15 billion increments in response to changes in the economy.
“I would be very comfortable moving in small amounts -- $10 or $15 billion at a time,” Bullard said on Bloomberg Radio’s “Hays Advantage” with Kathleen Hays. “We are getting much closer.”
The Federal Open Market Committee seems to be coming around to the view of adjusting purchases, so-called quantitative easing, in response to fluctuations in data, Bullard said. The St. Louis Fed chief, who votes on monetary policy this year, was one of the first Fed official to urge slowing the pace of bond purchases in 2013 in response to economic reports, a position echoed by Chairman Ben S. Bernanke last month.
Bullard said Fed policy is appropriate for now, adding “I don’t think we have to be in any hurry” to curb purchases with inflation low.
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