Improved economic and labor market conditions suggest the central bank should set a fixed dollar amount on its current bond-buying program and end the program when that amount is reached, a top Federal Reserve official said on Monday.
"We cannot continue to play this bond-buying game by ear and risk the Fed's credibility while creating lingering uncertainty about the course of monetary policy,'' said Charles Plosser, president of the Philadelphia Fed, in remarks prepared for delivery to the Risk Management Association.
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The Fed currently buys $85 billion in Treasury and mortgage bonds per month in an effort to boost investment, hiring and growth. It is the Fed's third bond-buying program, but unlike the first two, it is the only one that is open-ended.