Tags: Fed | bond | buying | unemployment

Fed’s Lockhart: It's Premature to Consider Slowing Bond Buying

Wednesday, 10 April 2013 09:03 AM

Federal Reserve Bank of Atlanta President Dennis Lockhart said it’s too early for the central bank to consider reducing its pace of bond purchases following a weakening in the labor market.

“I do think too much focus on that at the moment is a bit premature,” Lockhart told reporters in Stone Mountain, Georgia. “I have emphasized I think we have to wait and watch the data come in and see how the economy evolves.”

Lockhart, who doesn’t vote on monetary policy this year, has supported the central bank’s monthly purchases of $85 billion in Treasurys and mortgage-backed securities as a means to try to bring down 7.6 percent unemployment.

Fed officials are considering how quickly to slow purchases amid mixed signs for the labor market, with 88,000 jobs added in March in the smallest gain in nine months.

“It is possible the conditions will develop in the second half of the year or in early 2014 that will allow some measure of winding it down,” Lockhart said.

A former Georgetown University professor, Lockhart has led the Atlanta Fed since 2007. The Atlanta Fed district includes Alabama, Florida, Georgia, and portions of Louisiana, Mississippi, and Tennessee.

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Federal Reserve Bank of Atlanta President Dennis Lockhart said it's too early for the central bank to consider reducing its pace of bond purchases following a weakening in the labor market.
Fed,bond,buying,unemployment
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2013-03-10
Wednesday, 10 April 2013 09:03 AM
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