ADD IT to the FED speak glossary: TAPER and conundrum jaja

TAPER & TIGHTEN

Greenspan: Taper Now, Even If Economy Not Ready


DON'T TAPER

Chairman Ben S. Bernanke needs to see four months of job growth averaging at least 200,000 to justify reducing the pace of asset purchases, according to Vincent Reinhart, a former director of the Fed’s Division of Monetary Affairs. Roberto Perli, a former researcher in the division, said the central bank would need to see that pace “through the summer.”

Bernanke said at a March 20 press conference that before curbing purchases, the FOMC seeks “sustained improvement across a range of indicators” including payrolls, wages, claims for unemployment insurance, quit rates and economic growth.