Fed should taper aid, official says

Published Aug 6, 2013 at 05:00AM

Federal Reserve policymakers must “gird our loins” to start tapering the central bank’s bond-buying program this fall after the drop in the unemployment rate to 7.4 percent, a top official said Monday.

Richard Fisher, president of the Federal Reserve Bank of Dallas, likened the central bank’s stimulus efforts to “a monetary Gordian knot” — a complex tangle of programs that must be “gingerly” unwound to avoid havoc in financial markets.

The process needs to start soon, said Fisher, who in June said the Fed should not live in fear of pulling the plug on what he dubbed “monetary cocaine.”

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