WASHINGTON (Reuters) – The Federal Reserve should start reducing its $120 billion in monthly bond purchases this fall and cut them “fairly rapidly” so the program ends in the first months of 2022 and paves the way for a rate increase that year if needed, St. Louis Federal Reserve president James Bullard said on Monday.
“This is all about moving the supertanker and nudging the supertanker in the right direction at the right time,” Bullard said, arguing that the Fed is not well positioned right now to deal with a persistent inflation shock.
(Reporting by Howard Schneider; Editing by Andrea Ricci)
