GM Says Fed Clarity Over Tapering Plan Would Help Market AdjustTim Higgins
General Motors Co., the largest U.S. automaker, said efforts by the Federal Reserve to reduce its $85 billion in monthly bond purchases would benefit from clarity about the plan.
“I think about it a lot like gas prices, where we can gradually adjust to gas prices in an economy where that happens over a more gradual time frame,” Mark Reuss, president of GM’s North America operations, told reporters today at the Los Angeles Auto Show. “Clarity always helps, it adds, people can plan.”
Federal Reserve officials said they may reduce their monthly bond purchases “in coming months” as the economy improves, according to minutes of their last meeting released today in Washington.
Policy makers “generally expected that the data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months,” according to the record of the Federal Open Market Committee’s Oct. 29-30 gathering.
Officials also discussed how to clarify or strengthen their communication about the economic thresholds that guide how long interest rates will stay low.
“There’s expansion that can happen as long as there’s not a spike” in interest rates, Reuss said of the U.S auto market.