Fed's Rosengren: Fed should begin slowing stimulus efforts by fall

Rosengren calls for tapering to begin in the fall in AP interview

IN an interview with the Associated Press, Boston Fed president EricRosengren (voter 2021) is saying the Fed should begin slowing stimulus efforts by the fall. He said:

• The central bank should announce in September that it will begin reducing its $120 billion in purchases of Treasury and mortgage bonds "this fall."
• The bond purchases are no longer helping to create jobs but are instead mostly helping drive up the prices of interest-rate sensitive goods such as homes and cars.

Rosengren joins Fed's Bullard, Bostic, Kaplan, Waller who are seen as more hawkish and looking for a faster taper this fall vs. than Fed's Brainard and the Fed Chair Powell who area still holding out until more significant progress is made. Fed's Clarida, is between the most hawkish and most dovish seeing the taper starting in December if his projections remain on course.

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