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Politics : A Real American President: Donald Trump

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From: Sr K5/19/2021 2:58:49 PM
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Fed Signals Eventual Shift From Easy-Money Pandemic Policies

Officials want to begin planning for tapering of bond-buying program, April meeting minutes show

wsj.com


Atlanta Fed President Raphael Bostic has echoed remarks from other Fed officials indicating the central bank could begin looking at adjusting monetary policy.
PHOTO: SARAH SILBIGER/BLOOMBERG NEWS

By
Paul Kiernan
and
Michael S. Derby

Updated May 19, 2021 2:49 pm ET

The Federal Reserve has begun to telegraph an eventual shift away from the easy-money policies implemented during the pandemic as evidence builds of a robust economic recovery and mounting inflation.

Several Fed officials said this week that the central bank is closely watching economic developments and will be ready to adjust policy when necessary. Minutes from the central bank’s policy meeting in late April, released Wednesday, reported that some Fed officials want to begin discussing a plan for reducing the Fed’s massive bond-buying program at a future meeting.

“If we got to the point where we were comfortable on the public health side that the pandemic was largely behind us, and was not going to resurge in some way that was surprising, then I think we could talk about adjusting monetary policy,” St. Louis Fed President James Bullard told reporters after a speech Wednesday. “I don’t think we’re quite to that point yet, but it does seem like we’re getting close.”

Atlanta Fed President Raphael Bostic, a voting member of the Fed’s rate-setting committee, made similar remarks in a Bloomberg television interview.

“We’re going to have to be very nimble in terms of our monitoring of the economy and our policy responses,” Mr. Bostic said Wednesday.

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