Dennis Lockhart: Fed officials are committed to stimulus despite "mixed signals"
“There certainly seems to be an acute fixation on the timing of any adjustment to the asset purchase program and I guess I would just encourage everyone to not lose sight of the bigger picture.”
source: BLOOMBERG TELEVISION
“I think we’re approaching a period in which we can consider dialing back the asset purchases to some extent. I do think it’s important to emphasize that that’s not an exit from asset purchases, it’s simply a recalibration of the amount of purchases. I think that’s a very important point to make because the sense that some people in the market have had is that suddenly this asset purchase program is going to be effectively yanked and that’s not what I see happening. An adjustment.”
“I never question markets. It’s not a single thinker. It’s a process of buying and selling and so forth so I don’t really question the market per say. I would say that there seems to be an acute fixation on the timing of any adjustment to the asset purchase program. I guess I would just encourage everyone to not lose sight of the bigger picture and I think the bigger picture is that any adjustment is not a major policy shift. The high level of accommodation will stay in place. I have always viewed the asset purchases as a supplement to the main pillar of our policy and that’s the short-term interest rate. The policy of keeping rates low will continue.”