Federal Reserve Bank of Philadelphia chief Patrick Harker on Wednesday said it is time for central bank officials to begin talking about scaling back its massive bond purchase program, going further than he has in earlier remarks and further than other Fed officials.
Fed policymakers agreed in April to keep purchasing $120 billion in bonds a month to support the economy and the flow of credit to businesses and households. At the time, Fed chair Jerome Powell said it was not time to begin “talking about talking about” reducing—or tapering—the bond purchases.
That was also the message in May. Harker said in a May 11th speech that the economy needed more time to recover before the Fed should begin discussing tapering. In an interview on CNBC that same day, St. Louis Federal Reserve President James Bullard agreed, saying “it’s too early to talk taper.”
Ten days later, however, in