Fed's Lockhart says he wouldn't rule out tapering in October

The Fed's Dennis Lockhart has said that he wouldn't rule out tapering at the the October Federal Open Market Committee (FOMC) meeting.

While analyst speculation has rested on tapering beginning in September or December, this upsets things somewhat.

Rumours about tapering - or a reduction in the rate at which the Fed expands the monetary base - have seen volatile market reaction, as traders are concerned by a possible exit from loose monetary policy.

Lockhart said that monthly job growth of 180,000 to 200,000 could see the Fed's bond purchase programme curbed, and said that data over the "next few weeks" would be key to the tapering decision.

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