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WASHINGTON (AFP) – A senior Federal Reserve official said Friday that there is a possibility of cutting the Fed’s stimulus in October, if economic data improves significantly.

Speaking two days after the Federal Open Market Committee shocked expectant markets by not reducing its $85 billion a month stimulus, FOMC member James Bullard said the beginning of the “taper” could still come this year.

“It’s possible you get some data that changes the complexion of the outlook and makes the committee comfortable with a small taper in October,” he told Bloomberg television.

“It’s possible. I’m not saying its going to happen, but it’s possible.”

Bullard, president of the St. Louis branch of the Federal Reserve and a close ally of Fed Chairman Ben Bernanke, said the decision not to begin reducing the stimulus had been “borderline”.

Economists and markets had widely expected the quantitative easing program to be scaled back from Wednesday’s FOMC meeting, and interest rates had jumped in expectation of less easy money flowing into the economy from the Fed.

But Bullard said that a worsening of some key economic indicators, as well as the looming political battle over the government budget and debt ceiling, had raised concerns.

“We got some weaker data, and that put the committee in a position where we could delay,” he said.

“I think it was a good decision. We said that this is data-dependent.”

Moreover, he said, despite markets having expected a stimulus cut of $10-15 billion per month, the real impact was not large.

“How much difference is there between zero and $10 billion?”

Photo Credit: AFP/Timothy A. Clary

President Trump boards Air Force One for his return flight home from Florida on July 31, 2020

Official White House Photo by Joyce N. Boghosian

Reprinted with permission from Alternet

Florida senior residents have been reliable Republican voters for decades, but it looks like their political impact could shift in the upcoming 2020 election.

As Election Day approaches, Florida is becoming a major focal point. President Donald Trump is facing more of an uphill battle with maintaining the support of senior voters due to his handling of critical issues over the last several months. Several seniors, including some who voted for Trump in 2016, have explained why he will not receive their support in the November election.

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