January 11, 2019 / 4:14 PM / 6 months ago

Powell sought quick end in 2013 to Fed's bond buying -Fed transcript

Jan 11 (Reuters) - Federal Reserve Chairman Jerome Powell, in his early days as a member of the U.S. central bank’s board of governors in 2013, argued frequently and forcefully for an end to the bond purchases undertaken to support a recovery from the financial crisis, transcripts of policy meetings from that year released on Friday showed.

Powell, who joined the Fed board in May 2012 when Ben Bernanke was the central bank’s chairman, advocated in January 2013 for a plan to taper bond purchases, “ending them before year-end, whether or not we see a substantial improvement in the labor market,” according to the transcript from that month’s meeting of the policy-setting Federal Open Market Committee.

The Fed did announce a plan to slow its purchases later that year, but not before global financial markets endured months of turbulence in what has become widely known as the “taper tantrum.”

Powell succeeded Janet Yellen as Fed chief in 2018.

Reporting by Ann Saphir, Howard Schneider, Jonathan Spicer and Trevor Hunnicutt; Writing by Dan Burns Editing by Paul Simao

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