Federal Reserve policy makers say they want to avoid a sudden increase in interest rates when the time comes to start unwinding record monetary easing. A shrinking federal budget deficit is likely to help them meet that goal.
The Federal Reserve won’t exit any time soon from unprecedented bond-buying under its quantitative- easing stimulus strategy, even as the world’s biggest economy shows signs of recovery, according to Stephen Stanley of Pierpont Securities LLC.
Federal Reserve Chairman Ben S. Bernanke prepared to deliver a speech on the outlook for the U.S. economy as some of the most optimistic forecasters scaled back their projections for growth in the second half.
Stephen Stanley, chief economist at Pierpont Securities LLC., says the Federal Reserve should focus more on unemployment and less on inflation. Stanley speaks with Bloomberg's Sara Eisen and Michael McKee on "Bloomberg On the Economy."