Skip to main content

Fed's Lacker says U.S. data justifies less bond buying

Signs of an improving labor market justify further reductions in monthly bond purchases by the Federal Reserve, a senior official at the U.S. central bank said on Friday.

_0">

Richmond Fed President Jeffrey Lacker told journalists that a report showing weak U.S. hiring in December appeared to be "aberrational."

"It would take a very significant change in the outlook for me to support not tapering, and I don't think the data we've seen so far are close to that," Lacker said following a speech to risk managers.

He said a variety of labor market indicators, including the level of employment and the number of job openings, paint a picture of the sustained improvement in the job market outlook sought by the Fed.

"They all line up," Lacker said.

The Fed announced last month it was reducing monthly bond purchases to $75 billion from $85 billion. The program has aimed to spur a faster recovery from the 2007-09 recession.

Investors expect the central bank will continue reducing monthly purchases throughout 2014, though their conviction is being tested by data released this month that showed the economy adding just 74,000 jobs in December, less than half the pace of the prior month.

A continued slowdown in job growth could dissuade the Fed from further winding down its bond buying stimulus. Still, many analysts think last month's weak hiring will prove temporary, and that U.S. economic growth will pick up substantially this year.

While Lacker thinks the U.S. job market is strong enough for the Fed to dial back its support for the economy, he is less optimistic on the outlook for the broader economy. In his remarks to the risk managers, he said economic growth this year would likely be closer to 2 percent than to 3 percent.

Lacker also weighed in on the debate in policy circles over how the Fed should react to any signs of asset bubbles, saying it would be a mistake for policymakers to let worries over bubbles interfere with their inflation mandate.

"Deflecting monetary policy from its price stability mission to make up for market imperfections ... seems to me misguided," he told reporters.

(Reporting by Jason Lange; Editing by James Dalgleish and Chizu Nomiyama)

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o