- Fed actively engaged in trying to craft consistent global rules
- Fiscal policy has posed drag on economy for years, likely to lessen in 2014
- Fiscal policy has increased burden on mon pol
- Economy is beginning to recover, hopes fiscal policy does no harm
- 6.5% unemployment threshold is not FOMC definition of full employment
- Sees unusual level of long term unemployed workers
- Fed has said if economy goes as expected will keep tapering
- Would end purchases some time next fall
- Fed does not need or intend to quickly wind down asset portfolio
- Allowing assets to run off will reduce portfolio and no need to sell assets to tighten policy
- Developing arsenal of tools to tighten when time comes
Asked about slowing the taper after recent poor data
- Have seen quite a bit of soft data over the last 5-6 weeks, clear weather has played some role
- If a significant change in outlook we would be open to reconsidering pace of taper
- Won’t jump to conclusions here on whether to stop tapering
- Need to get a firmer handle on what is causing soft data
