Two Fed officials downplay worries over end to stimulus
Reuters – 4 hours ago
"Minneapolis Fed President Narayana Kocherlakota said investors, who drove stock and bond prices lower in the last few days, were wrong to view the central bank as having become more keen to tighten policy than it was before last week's policy meeting."
"the Fed's ultimate "exit strategy" is still a ways out in the future."
"Even if we reach a situation this year where we dial back (stimulus), we will still be running an accommodative policy," he said. In a favorite line, Fisher repeated: "I'm not in favor of going from wild turkey to cold turkey overnight.
As it stands, the Fed is buying $85 billion in Treasury paper and mortgage-backed securities each month to stimulate investment, hiring and economic growth.
Since Bernanke's comments on Wednesday, financial markets have pulled forward the date when they expect the Fed to start raising interest rates, currently near zero, to around September 2014, even though a majority of Fed policymakers do not expect lift-off in rates until 2015."