Dallas Fed President Robert Kaplan told Reuters that, “as long as we continue to make progress in July numbers and in August jobs numbers, I think we’d be better off to start adjusting these purchases soon,” referring to the QE program.
He added that tapering over a time frame of “plus or minus” about eight months would help give the Fed ” as much flexibility as possible to be patient and be flexible on the Fed funds rate.”
He emphasized it’s “important to divorce discussion of the Fed funds rate from discussion of our purchases.” His comments on purchases are not intended to suggest I want to take more aggressive action on the Fed funds rate.”
