A senior Fed official called for a debate on reducing central bank asset purchases if the U.S. economic recovery continues to accelerate. This is the latest sign that the Fed is gradually reducing its support for the economy.

Federal Reserve Vice Chairman Randal Quarles said on Wednesday that he believes that even after “temporary factor discounts,” the US inflation rate since December is still “sufficient to prove” that it is worth reducing in the second half of 2021. Asset purchase.

However, he said in a speech at the Hutchins Center for Fiscal and Monetary Policy of the Brookings Institution, a think tank, that the labor market is still lagging.

“If my expectations for economic growth, employment and inflation in the next few months are confirmed, … especially if their performance exceeds my expectations… this is for [Federal Open Market Committee] The plan to adjust the speed of asset purchases will be discussed at the upcoming meeting. Quarles said.

“In particular, since December Moving in the direction of our broad and inclusive definition of maximum employment opportunities. “He added.

Quarles is not the only official who hinted that the Fed is willing to start thinking about reducing its monetary policy support while the economy continues to recover.This represents a Transfer The central bank’s position is that any discussion about curtailing asset purchases is premature.

In an interview with Yahoo Finance, Fed Vice Chairman Richard Clarida said: “There will be a period of time at the upcoming meeting where we will start discussing the pace of reducing asset purchases.” “It will depend on it. To the data stream we get.”

Mary Daly, President of the Federal Reserve Bank of San Francisco, also confirmed that the central bank has begun to raise the topic of gradual reduction. In an interview with CNBC on Tuesday, she said: “We are talking about gradual reduction, which is what you want.” “You want a long-term vision here.”

Quelles said that the discussion about reducing the Fed’s large-scale monetary stimulus measures during the pandemic is a “risk management” issue.

He said: “Our best analysis at the moment is that the inflation rate rising far above our target will be temporary.” “However, those on the Federal Open Market Committee are economists and lawyers, not lawyers. Prophet, prophet and revelator. We may be wrong, so what will happen?”

He added: “Part of the calculus for balancing our risk of overshooting or undershooting our 2% target is that the Fed has the tools to deal with excessive inflation, and it is more difficult to reduce inflation below the target.”

Quarles pointed out that although he emphasized the importance of the Fed’s discussion of restricting asset purchases, he said that in the face of temporary increases in prices and wages, the central bank must remain “patient. Inflation expectations “Consistent” with its goals. He added that any remarks about the Fed’s interest rate hike are “something in the future.”