Start Taper Now to End Demand-Weakening Uncertainty: CEO
The Federal Reserve should begin its move away from easy money now in order to strengthen a "tepid recovery," the head of a heavy machinery making company told CNBC on Monday.
Terex Chairman and CEO Ronald DeFeo said demand has been weakened by the uncertainty surrounding when the central bank will tighten its monetary policy.
"The U.S. market is better than many markets. 'In rust we trust,' we say because as things get older they need to be replaced," he said in a "Squawk Box" interview. "But there needs to be more employment, greater growth, [and] greater certainty around tax policy in this country."
The Fed has signaled that it would scale back its $85-billion-a-month bond-buying program later this year provided the economy continues to improve.
(Read More: Job Growth Posts Large Gain in June; Rate Holds)
"I would like to see the tapering happen because it's creating an uncertainty out there that we just don't know when it's going to end," said DeFeo, who would also like to interest rates "return to a more normal level."
While bond yields have been spiking, the central bank isn't expected to begin raising near-zero interest rates anytime soon. Policymakers have said they won't consider increasing rates until unemployment falls to 6.5 percent, provided the outlook for inflation stays under 2.5 percent.
On Friday, the government said the unemployment rate held at 7.6 percent in June, as nonfarm payrolls grew by a larger-than-expected 195,000 jobs.