Answering questions after speech
Comments come on the back of a speech in NY on bond liquidity. His prepared text had no reference to monetary policy or the economy. However in a WSJ interview on Monday he said:
"If the economy continues on the same trajectory it's on...and everything else suggests that's likely to continue...then there is a pretty strong case for lifting off" before 2015 ends.
In other comments:
- has not been a shortage of treasuries in marketplace
- not seeking a particular level, liquidity and markets
- would be concerned if declining liquidity raises risk premiums
- term premiums are very depressed, partly due to fed
- need to balance transparency vs. fluidity treasuries