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By Ishika Dangayach, 1:26 PM ET
Loretta Mester, president of the Cleveland Federal Reserve Bank, said on Friday that she still wants the central bank to start tapering asset purchases this year, joining a chorus of policymakers who stated that their plans to begin tapering support had not been derailed by weaker job growth in August.
“I don’t think the August employment report has changed my view that we’ve made substantial further progress” on both inflation and employment, Mester told reporters.
The Fed's policy-making committee will have to determine how to proceed, and there may be differing opinions on what the exact timing of the taper should be, according to Mester.
Mester, on the other hand, said she would be fine with starting the taper this year and tapering down purchases in the first half of next year, reiterating views she expressed in late August.
When the coronavirus pandemic began last year, the Fed rushed to boost the economy by cutting interest rates to near zero and purchasing $120 billion in government bonds every month.
Several Fed officials stated this week that the central bank may still proceed with plans to slow the pace of asset purchases this year. Policymakers are scheduled to meet on September 21 and 22.
Source: Reuters