The U.S. central bank must close its bond-buying program as soon as possible and a conclusion to the project was "in sight", said an official of the Federal Reserve to a German magazine Saturday.
Federal Reserve chairman Ben Bernanke caused a market uproar in May by introducing plans to ease back on initiatives once economy recovers. According to Bernanke, there is a great possibility that the Federal Reserve will decrease its bond investments for late 2013 and stop them completely by middle of next year if U.S. economy recovers.
"We must make our exit from the bond-buying program quick," Richmond Federal Reserve President Jeffrey Lacker told German publication WirtschaftsWoche in an interview. Lacker is reputed to be one of the most fiscally conservative members in the Reserve as well as a persistent critic of the recent bond buying round.
Lacker, who is not part of the roster of policymakers set to vote for monetary regulations, also shared that "an end to these bond purchases came into sight at the latest Fed meeting". He also placed emphasis on the low inflation and rapidly declining U.S. unemployment rate as signals to start dissolving the program.
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