New York Fed chief sees potential QE tapering this year

The Fed's William Dudley says he sees growth picking up in the remaining half of 2013, and bond purchases may be moderated as a result (release).

In its statement, the FOMC said that it may vary the pace of purchases as economic conditions evolve. As Chairman Bernanke stated in his press conference following the FOMC meeting, if the economic data over the next year turn out to be broadly consistent with the outlooks that the FOMC sees as most likely, which are roughly similar to the outlook I have already laid out, the FOMC anticipates that it would be appropriate to begin to moderate the pace of purchases later this year. Under such a scenario, subsequent reductions might occur in measured steps through the first half of next year, and an end to purchases around mid-2014. Under this scenario, at the time that asset purchases came to an end, the unemployment rate likely would be near 7 percent and the economy’s momentum strengthening, supporting further robust job gains in the future.

According to Thomson Reuters' Fed Dove-Hawk scale, the New York Fed president is seen as a dove, and these comments suggest no change in attitude.