They are serious this time, really. Having missed their chance last week to taper the Fed’s $85 billion a month Quantitative Easing (QE) bond buying program, several Federal Reserve Presidents are letting the world know they still have taper on their minds.
Here is what a few of the Federal Reserve Presidents are saying:
St.Louis Federal Reserve President, James Bullard
The Fed might taper in October
The morning after the Federal Open Market Committee meeting last week where the Fed decided to continue the $85 billion a month QE bond buying program in place because the economy was still weak, St. Louis Federal Reserve President James Bullard told Bloomberg News that if the data improved, the Fed might taper QE in October.
Kansas City Federal Reserve President, Esther George
Delaying taper could hurt credibility
Ms. George who was the lone dissenter in the Fed’s decision not to taper QE last week spoke at a dinner in Denver last night where she expressed concern that “delaying action not only allows potential costs to grow, it also has the potential to threaten the credibility and the predictability of future monetary policy actions.
Richmond Federal Reserve President, Jeffrey Lacker
Tapering too soon could hurt credibility, but we might do it anyway
In contrast to Ms. George, Mr. Lacker said tapering too quickly could hurt the Fed’s credibility and told reporters in Stockholm, Sweden yesterday and echoing Bullard noted “It could be hard to do it (tapering) in October without losing face, but I don’t see why we couldn’t do it,”
Chicago Federal Reserve President, Charles Evans
We could taper in October or December or maybe later
Mr. Evans speaking in Oslo, Norway today to reporters said “But whether or not we’ll have enough confidence at the October meeting or the December meeting, I just can’t say that with a lot of certainty. I think there’s a decent chance of that. But it could go a little bit longer”
Federal Reserve Governor, Jeremey Stein
I voted for not tapering, but I could have voted for it
At a conference in Frankfort, Germany, Mr. Stein said he voted for not tapering QE “because I continue to support our efforts to create a highly accommodative monetary environment so as to help the recovery along by using both asset purchases” but added “I would have been comfortable” with the Fed tapering.
New York Federal Reserve President, James Dudley
Don’t rule out QE this year
Mr. Dudley, like Messrs Bullard and Federal Reserve Chairman Bernanke, mentioned that the decision to taper “depends on the data” and “certainly would not want to rule out” the possibility of a 2013 taper. In June Mr. Dudley notes that depending on the data, the size of QE might also rise.
Minneapolis Federal Reserve President, Narayana Kocherlakota
We need more QE
Mr. Kocherlakota told the rotary club in Houghton, Michigan, United States (doesn’t Mr. K get to jet off to Europe like his colleagues after Fed board meetings?) that in order to bring unemployment down the Fed should be doing whatever it takes and “doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place, and possibly providing more stimulus”
Chairman of the Federal Reserve, Ben Bernanke
there is no fixed calendar, if the data confirms we could taper this year, after that it depends on the data
Please visit the Smaulgld Store for a larger selection of recommended Kindles, books, music, movies and other items.
Or you can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM bullion ads on the site:
DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.
The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.
The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.