Fed’s Rosengren draws line in the sand on QE3 bond buys

The Federal Reserve should buy bonds at least until the US jobless rate falls below 7.25 per cent, a top Fed official said, pitching a plan that includes the first specific target for ending the central bank’s quantitative easing program.

Under the proposal unveiled by Boston Fed President Eric Rosengren, who is one of 19 Fed policymakers, the US central bank’s large-scale asset purchases would continue as long as inflation expectations remained subdued and they would not necessarily stop once the 7.25-per cent jobless threshold was crossed.

via Business feed http://www.scmp.com/business/economy/article/1074526/feds-rosengren-draws-line-sand-qe3-bond-buys