Comments from Cleveland Fed President Sandra Pianalto:
- Continuing asset purchases at reduced pace, limiting the overall size of QE, would still provide accommodation
- Large balance sheet could present uncertainties, risks
- Could slow pace of purchases if labor market outlook improves ‘sufficiently’
- We need to see more data on reaching conclusions on underlying strength of labor market
The thinking on Friday was that the Fed would stop talking about tapering QE for awhile after the soft jobs report — I guess not.
