Fed officials eye timeline for ending asset purchases

The Federal Reserve could be in a position to halt its asset purchases this year if the U.S. economy improves, a top Fed official said on Friday, while another warned the aggressive easing plan threatens the central bank's credibility.

St. Louis Fed President James Bullard, a voting member of the Fed's monetary policy panel this year, said a drop in the unemployment rate to 7.1 percent would probably constitute the "substantial improvement" in the labor market that the central bank seeks.

"If the economy performs well in 2013, the Committee will be in a position to think about going on pause" with the asset buys, Bullard said on CNBC TV. "If it doesn't do very well then the balance sheet policy will probably continue into 2014."

Read Full Article from Reuters

- Posted: 2013-01-04 15:59:43

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