Home / Market News / : New York Fed official avoids taper-plan details, says central bank remains focused on `flexible and adaptable’ implementation of policy

: New York Fed official avoids taper-plan details, says central bank remains focused on `flexible and adaptable’ implementation of policy

SIFMAThe Federal Reserve system remains focused on maintaining “flexible and adaptable” policy implementation, said a New York Fed official on Thursday, who didn’t offer any fresh details about the central bank’s forthcoming plans to taper monthly bond purchases.Officials are continuing to work on ways to improve the resiliency of the U.S. Treasury market, while also keeping their eye on technological innovations and the approaching end of LIBOR, or the London Interbank Offered Rate, said Lorie Logan, an executive vice president in the markets group of the New York Fed. The comments were made in prepared remarks to the Money Marketeers of New York University on Thursday.Her comments come as Fed policy makers are preparing to pull back soon on $120 billion in monthly bond purchases, which were intended to support the economy. Minutes of the Fed’s September meeting, released Wednesday, show that officials had discussed a plan to begin tapering those purchases in mid-November or mid-December. The discussion was around reducing asset purchases by $15 billion per month, although several policy makers preferred a more rapid pace.Strong inflation readings this week are raising concerns that the Fed might be pulling back on easy policy just as U.S. economic growth may be stagnating, and policy makers could be forced to lift interest rates by too much down the road. On Thursday, Treasury yields were lower across the board ahead of Logan’s speech, with the 10-year rate BX:TMUBMUSD10Y hovering around 1.52%. Stocks were higher, with the Dow industrials DJIA rising by more than 400 points and the S&P 500 SPX and Nasdaq Composite COMP indexes each rising about 1.5%. The Federal Reserve’s “ample reserves framework has ensured effectivepolicy implementation recently by adapting to evolving money market conditions,” Logan said. “However, market structure continuously evolves, which in turn can have important implications for the framework.”Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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