San Francisco Fed president says 2014 will be last of funny money bond buying | Waccabuc Homes
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John Williams, president of the San Francisco Federal Reserve, told Lambda Alpha International and Arizona Bankers Association that he supports the decision by the Federal Open Market Committee to start tapering its policy of printing money to buy bonds, and that he expects an end to the easy-money policy by the end of 2014.
The Fed announced in December that it would start easing back from its $85 billion a month bond-buying, cut the monthly pace of Treasury and mortgage purchases by $10 billion to $75 billion on an optimistic economic forecast.
"We will likely continue to reduce the pace of those purchases, and eventually eliminate them, over this year," he said. Williams said it was a straightforward decision, even though he was a supporter of the money printing that added $4 trillion in debt to the balance books.
"With the economy having improved so much and the future looking brighter, it was time to start taking our foot off the accelerator and ease up on the monetary stimulus," he said.
William is seen as closely aligned with incoming Fed Chair Janet Yellen, who was also president of the San Francisco Federal Reserve after her time as an economist at the University of California at Berkley.
"Scaling back on asset purchases is not a retreat from accommodative monetary policy. The federal funds rate will remain near zero for the foreseeable future,” he assured bankers.
http://www.housingwire.com/articles/28507-one-fed-dove-ready-to-end-easy-money
The Fed announced in December that it would start easing back from its $85 billion a month bond-buying, cut the monthly pace of Treasury and mortgage purchases by $10 billion to $75 billion on an optimistic economic forecast.
"We will likely continue to reduce the pace of those purchases, and eventually eliminate them, over this year," he said. Williams said it was a straightforward decision, even though he was a supporter of the money printing that added $4 trillion in debt to the balance books.
"With the economy having improved so much and the future looking brighter, it was time to start taking our foot off the accelerator and ease up on the monetary stimulus," he said.
William is seen as closely aligned with incoming Fed Chair Janet Yellen, who was also president of the San Francisco Federal Reserve after her time as an economist at the University of California at Berkley.
"Scaling back on asset purchases is not a retreat from accommodative monetary policy. The federal funds rate will remain near zero for the foreseeable future,” he assured bankers.
http://www.housingwire.com/articles/28507-one-fed-dove-ready-to-end-easy-money
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