Fed's Stein suggests September tapering move

Fed's Stein suggests September tapering move

Federal Reserve Gov. Jeremy Stein on Friday suggested that the central bank's first tapering move could come in September. In a speech to the Council on Foreign Relations, Stein used only September as the hypothetical start date for slowing the pace of purchases. He told markets not to focus on fresh payroll numbers that come out just before the meeting, saying any decision by the Fed to slow the pace of its asset-purchase program will be based on developments since the program started last fall in order to make the best judgment about the state of the economy and to reduce market volatility. "The best approach is for the [Fed] to be clear that in making a decision in, say, September, it will give primary weight to the large stock of news that has accumulated since the inception of the program and will not be unduly influenced by whatever data releases arrive in the few weeks before the meeting--as salient as these releases may appear to be to market participants," Stein said. "Even if a data release from early September does not exert a strong influence on the decision to make an adjustment at the September meeting, that release will remain relevant for future decisions," Stein said. "If the news is bad, and it is confirmed by further bad news in October and November, this would suggest that the 7% unemployment goal is likely to be further away, and the remainder of the program would be extended accordingly," he said.

Must confuse the Markets...scam artists..