Williams answering reporter questions:

  • Data we’ve seen on labor market has been good but GDP numbers weaker than forecast
  • Exactly when to cut bond buys less important than overall plan to complete taper by mid-2014
  • Talk of taper may have eliminated some tail risks to financial instability down the road
  • MBS purchases are more effective than Treasuries, want to keep buying them until end of QE3

Another hint that the (only?) reason for the taper is to diminish financial risks. The bigger near-term point is that a dove like Williams is probably going to support the taper, so it’s close to a done deal.