Posted 4 years ago on May 13, 2013, 12:36 a.m. EST by BradB
from Washington, DC
This content is user submitted and not an official statement
The Fed Has Started Talking About Ending Its Economic Stimulus Program! Henry Blodget | May 10, 2013, 7:28 PM | 10,408 | 39
Wall Street Journal reporter John Hilsenrath is so plugged in at the Federal Reserve that he has earned the nickname "Fed Wire." Whenever the Fed wants to start sending a new message to Wall Street, the story goes, they call up John Hilsenrath. And then, thanks to Hilsenrath's excellent articles, by the time the actual announcement comes out, it's no big deal, because everyone already knows about it. And now John Hilsenrath is reporting that the Fed has started talking about when and how to end its latest economic stimulus program: Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy—an effort to preserve flexibility and manage highly unpredictable market expectations. Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated.