2 Fed officials stress that bond purchases won't be slowed until economy strengthens | iNFOnews | Thompson-Okanagan's News Source

Current Conditions

Cloudy
1.2°C

2 Fed officials stress that bond purchases won't be slowed until economy strengthens

FILE - In this Thursday, May 24, 2012, file photo, William Dudley, president of the Federal Reserve Bank of New York speaks in New York. Federal Reserve officials sought Thursday, June 27, 2013, to calm investors by assuring them the Fed won't start trimming its bond purchases until the economy has strengthened. William Dudley said Thursday that if the economy proves weaker than the Fed forecasts, he expects the bond purchases to continue. (AP Photo/Mark Lennihan, File)
June 27, 2013 - 8:17 AM

WASHINGTON - Federal Reserve officials are seeking to calm investors by assuring them the Fed won't start trimming its bond purchases until the economy has strengthened. They say any pullback in the Fed's stimulus will hinge on the economy's performance, not a calendar date.

William Dudley, president of the Federal Reserve Bank of New York, says that if the economy proves weaker than the Fed forecasts, he expects the bond purchases to continue.

Chairman Ben Bernanke jolted investors last week when he said the Fed will likely slow its bond-buying this year if the economy continues to improve. The bond purchases have helped keep interest rates low.

Jerome Powell of the Fed's board in Washington says separately that investors appear to have incorrectly concluded that the Fed will taper its purchases soon.

News from © The Associated Press, 2013
The Associated Press

  • Popular kelowna News
View Site in: Desktop | Mobile