‘Bond-buying by US Fed may be more aggressive than new timeline’https://indianexpress.com/article/news-archive/web/bondbuying-by-us-fed-may-be-more-aggressive-than-new-timeline/

‘Bond-buying by US Fed may be more aggressive than new timeline’

The US Federal Reserve’s asset purchases would be more aggressive than the timeline Chairman Ben Bernanke outlined last week if US economic growth

The US Federal Reserve’s asset purchases would be more aggressive than the timeline Chairman Ben Bernanke outlined last week if US economic growth and the labour market turn out weaker than expected,the influential head of the New York Fed said on Thursday.

Pushing back hard against market concerns over the withdrawal of quantitative easing,William Dudley stressed in a speech that the newly adopted timeline for reducing the pace of bond buying depends not on calendar dates but on the economic outlook,which remains quite unclear.

Turning to the question of when the Fed will ultimately raise interest rates,Dudley,a close ally of Bernanke,went so far as to say that recent market expectations for an earlier rate rise are “quite out of sync” with the statements and expectations of the policy-making Federal Open Market Committee.

“Economic circumstances could diverge significantly from the FOMC’s expectations,” Dudley told reporters at a briefing at the New York Fed’s headquarters in downtown New York.