WASHINGTON—Friday’s jobs report keeps the Federal Reserve on track to begin informal internal discussions about reducing the pace of its large bond-buying programs, though a concrete plan for winding down the purchases isn’t imminent.
Fed officials are likely to discuss their bond purchases at their next policy meeting, June 15-16, according to their recent public comments. Still, they haven’t indicated they are ready to start formal deliberations, which would likely include staff presentations on how and when to conduct the so-called tapering process.
Many officials have said they want to see more data on inflation and the labor market before adopting a clear timeline and execution strategy. That process took several months when the Fed last prepared to end a bond-buying program in 2013.
“We’re going to have discussions about our stance of policy overall, including our asset-purchase programs, and including our interest rates,” Cleveland Fed President Loretta Mester said Friday on CNBC shortly after the Labor Department released what she described as “a solid employment report.”
Ms. Mester echoed other policy makers in saying she would like to see more progress in the economy before beginning to reduce, or “taper,” the purchases.
