LABOUR market is improving steadily, a top Fed official said yesterday, sustaining expectations the central bank will announce plans to slow down its money printing operations this month.
The Fed is buying $85bn (£54.1bn) of market securities each month to stimulate the economy, and has previously said it will slow the pace as the economy and jobs recover.
“We are continuing to get closer to this marker of substantial improvement,” San Francisco Fed president John Williams told Bloomberg yesterday.
It came after a speech in which the moderately dovish policymaker warned tapering could have unintended consequences.
Markets have experienced increased volatility since the announcement in June that tapering could happen this year, as markets had relied on the support provided by unlimited money printing.
Markets are also looking for certainty on the next Fed head, likely to be Janet Yellen or Larry Summers.