Fed Board Member Evans called reduction of the bond purchases this year "quite likely"!

The Fed board member Charles Evans, president of the Chicago Fed, commented to journalists that a reduction of purchases of bonds this year is very likely. "We are quite likely to reduce the flow of purchases rate starting later this year - I couldn't tell you exactly which month that will be - and it's likely to wind down over time in a couple or few stages" Evans said. On the question of whether a restriction is made in the next month, Evans said that he could not say "clearly" this. But He is the third official of the Fed within two days, which suggests a reduction in September this way. The next meeting of the Fed, on which the purchases will be discussed, will be held on 17 and 18 September.

Among the short-term interest rates by the U.S. Federal Evans said that this will continue to remain at their current levels near 0% until the U.S. unemployment rate reached 6.5%, which he expects to end of the first half of 2015. This period could be shorter, however, if economic growth increases unexpectedly strong and reached 3.5%. Furthermore, Evans said that this period could be extended further if inflation does not reach the target of the Fed's target of 2%.

More information about a reduction of purchases could supply the speech of Fed Chairman Ben S. Bernanke on Wednesday at 14:30 h (GMT -5).

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