This on Bloomberg:
Federal Reserve Bank of Richmond President Jeffrey Lacker said the economy will probably grow this year between 3.5 percent and 4 percent, prompting a re- evaluation of the Fed’s plan to buy $600 billion in bonds.
Makes sense. And its not the first article I have seen floating the idea, but it is the first I have seen (I think) from a Fed. president.
QE2 was announced as having a degree of flexibility in response to developments. Given the orchestration of speeches/articles/etc. to show what the Fed. is thinking I don’t expect that this was just some random observation – rather that it may well be an indication of a potential winding back of QE2. I will be watching for more such speeches/articles/etc.
I found this Bloomberg article from a link on Between The Hedges blog. The author does a lot of work each day collating relevant headlines (amongst other things), work that is much appreciated by me.