CHICAGO (Reuters) – Long-term U.S. Treasury yields have risen, suggesting that investors are expecting the Federal Reserve to begin winding down its massive stimulus, a top Fed official said on Monday.
Saying he will urge his colleagues at the Fed’s policy-setting meeting next week to begin trimming their bond-buying program immediately, Dallas Fed President Richard Fisher said he wants to reduce bond buying to zero over a “defined time frame” so that “the market will not be surprised.”
The Fed is buying $85 billion a month in Treasuries and housing-backed securities to boost spending and hiring.
Fisher said he is worried that house prices are rising so fast in some areas that they are becoming unaffordable.
(Reporting by Tom Polansek, writing by Ann Saphir; Editing by Bernard Orr)