Philadelphia Fed President Patrick Harker argued on Wednesday that the Fed has to be careful with communication about asset purchases to avoid a taper tantrum, as reported by Reuters.
Additional takeaways
“Today’s housing market is very different from the Great Recession.”
“The time frame for tapering talks have not been decided.”
“My view is that if one of the purposes of asset purchases is to help smooth market functioning, the Fed is pretty much there.”
“The Fed needs to discuss when the appropriate time to adjust asset purchases is.”
Market reaction
The US Dollar Index paid little to no attention to these comments and was last seen trading flat on the day at 89.93.
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