Philadelphia Fed President Patrick Harker said “we’re planning to keep the federal funds rate low for long.” He added, “but it may be time to at least think about thinking about tapering our $120 billion in monthly Treasury bond and mortgage-backed securities purchases.”
“We have to be careful in removing accommodation so that we don’t create any kind of ‘taper tantrum,'” he emphasized. “And that’s why we need to communicate very early, very often what we’re going to do.”
