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Wednesday, Aug 21
Resigned to taper, Fed's Rosengren wants to keep it small
- "If you're very uncertain about how strong the improvement in the economy is, and how self-sustaining, then you should move in fairly small increments," Boston Fed chief and dovish FOMC voter Eric Rosengren tells the WSJ.
- Reporting the Rosengren comments, Jon Hilsenrath reads the July FOMC minutes as reaffirming the Fed's intention to wind down QE with the only question being how aggressively it will do so.
- Adding to the task of reading the economic tea leaves and weaning the country off of the asset purchase program is Bernanke's lame-duck status, with Rosengren noting the difficulty of sending convincing signals about future plans amid a leadership transition. When officials gather this week in Jackson Hole for the Fed's annual retreat, Bernanke will be notably absent.
- Bernanke's term is up in January and the President is expected to nominate a successor in the fall.