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Investments / The Ticker

Former Fed Vice Chair: Wait to taper

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According to the Wall Street Journal, if former Federal Reserve Vice Chair Donald Kohn were still on the central bank’s policy-setting committee, he would recommend holding off on tapering until 2014.

 “I think I would wait, but it’s a close call,” he said Friday during a question-and-answer session with The Wall Street Journal’s David Wessel at a George Washington University conference on the Fed.

“I can see argument that there’s more emphasis on the forward guidance. That’s an easier tool to use. That’s more like the fed funds rate,” he said, referring to a benchmark overnight interbank rate that the Fed uses to influence short-term rates.

Source: WSJ
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