The Federal Reserve can scale back its $85 billion-a-month asset purchase program if the labor market holds the gains it has made recently, said Sandra Pianalto, the president of the Cleveland Fed Bank, on Wednesday. In a speech to The Center for Community Solutions in Cleveland, Pianalto said that there have been "clearer signs of a more sustained recovery" in the labor market in the last few months. "In light of this progress, and if the labor market remains on the stronger path that it has followed since last fall, then I would be prepared to scale back the monthly pace of asset purchases," Pianalto said. She did not provide any timetable for Fed action. The Cleveland Fed president is seen as one of the pragmatists on the central bank and is often close to the majority opinion. She is not a voting member of the Fed's policy-making committee this year.
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