Another month of strong employment data could meet the Federal Reserve’s criteria to start cutting down its bond-buying program, Boston Federal Reserve Bank President Eric Rosengreen said in a Reuters report.

  • Rosengreen noted that the US had created over 900,000 jobs for two straight months, with the unemployment rate down to 5.4%. Another strong reading would support a tapering announcement in September.
  • The official believes the inflation reading already meets the standard, still slightly above the target 2%. He expects the print above 2% in 2022, but officials will have to wait if this would be realized. He is set to become a voting member of the  Fed policy-setting committee next year by then.
  • Rosengreen reiterated support for the reduction of mortgage-backed securities and securities by equal amounts, which he believes should be finalized by the middle of 2022.
  • Officials of the Federal Reserve last year committed to a $120-billion monthly bond-buying program until “substantial further progress” is met in terms of inflation and employment.

Rosengreen believes the Delta COVID-19 variant is unlikely to cause massive shutdowns, citing the vaccination rollout.