(Reuters) The president of Boston Fed Eric Rosengren says if the US posts another strong job gains, it will satisfy the central bank’s requirements for tapering bond purchases.
Rosengren referred to the more than 900,000 jobs created in July amid a fall in the employment rate to 5.4% in taper claims.
The Boston Fed chief believes the standard for Fed’s inflation is already met since it is slightly above the 2% target. He says the economy is yet to attain full employment to raise rates from near-zero levels.
Rosengren supports a reduction in mortgage-backed securities and Treasury securities by an equal amount, saying the program should be completed by the middle of next year.
Although Rosengren sees inflation running above 2% in 2022, he says Fed officials will have to wait to see if the forecasts are true.
Rosengren does not expect the Delta variant to pose a significant challenge since people are already vaccinated.
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