Fed May Need to Trim Purchase of Treasuries, Bullard Says
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The Federal Reserve may need to trim about $100 billion from its plan to buy $600 billion in Treasury securities because the U.S. recovery has gained strength, St. Louis Fed President James Bullard said.
“We are still feeding the fire at this moment, so I think we have to start thinking about turning this around in the near future,” Bullard said to reporters at a financial conference in Prague today. “If the economy is as strong as I think and hope it will be in 2011, I think it will be time for us to start to reverse our ultra-aggressive and ultra-easy monetary policy.”