A top official in the Federal Reserve said the Fed could still choose to slow stimulus policies at a meeting in October, despite an announcement Tuesday that the bond purchase program would continue.
“That was a borderline decision,” St. Louis Fed President James Bullard told Bloomberg News Friday. “The committee came down on the side of, ‘Let’s wait.’”
The Fed surprised Wall Street Tuesday and sent stocks soaring when it announced that it would continue to inject $85 billion into the economy each month through its asset purchase program in a policy known as quantitative easing.
Bullard said the Fed will hold a “live” meeting in October that will consider incoming data on the economy’s well-being.