Jerome Powell, in his days on the Fed board before being raised to the presidency, urged Ben Bernanke to announce a retreat in his efforts to stimulate the economy, even though he sensed that there could be more than a little Of volatility in the financial markets, according to the transcripts of the 2013 Federal Reserve meetings published on Friday
"We have to jump," Powell told Bernanke and his colleagues.
At issue was the third round of the Fed's asset purchase program, known as QE3, which had been underway since the previous September. The Fed was buying $ 85 billion a month in Treasury bills and mortgage-backed securities in an indefinite-term program.
Outside the public view, Powell was one of the "three amigos" who were becoming uncomfortable with purchases. "As Jay told me, we needed an" exit ramp, "wrote Bernanke in his memoir," The Courage to Act. "Powell insisted on an" exit ramp ".
See: Jerome Powell Fed means for investors and the economy
This view of purchases of "tapered" assets has received increasing support from Fed officials in the early months of 2013, but the market remained largely unaware.
The Fed drew up a plan where Bernanke mentioned during his press conference that the central bank was planning to reduce asset purchases in 2013.