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Federal Reserve policymakers have flexibility to ratchet up or down the pace of their bond buying program even if they should opt to begin a tapering at some point, Federal Reserve Bank of San Francisco President John Williams said Wednesday.
“We can adjust it down some, watch how things progress from there, and then adjust it again one way or the other,” Mr. Williams said in an interview Wednesday with Bloomberg and posted on its website Thursday.
Should the Fed opt to begin cutting back on the asset purchases, “it doesn’t mean we’re now in some autopilot of moving in the same direction,” he said. “You could even imagine a scenario where we would adjust it downward based on good data and then adjust it back” if the economy softened, said Mr. Williams, who is not this year a voting member of the Fed’s policy setting committee.
May 23 th
“We can adjust it down some, watch how things progress from there, and then adjust it again one way or the other,” Mr. Williams said in an interview Wednesday with Bloomberg and posted on its website Thursday.
Should the Fed opt to begin cutting back on the asset purchases, “it doesn’t mean we’re now in some autopilot of moving in the same direction,” he said. “You could even imagine a scenario where we would adjust it downward based on good data and then adjust it back” if the economy softened, said Mr. Williams, who is not this year a voting member of the Fed’s policy setting committee.
May 23 th