Cleveland Federal Reserve Bank President Sandra Pianalto said Friday that the benefits from the central bank’s $85 billion in monthly bond purchase may fade.
“Over time, the benefits of our asset purchases may be diminishing,” Pianalto said in a speech at Florida Gulf Coast University in Fort Myers, Fla.
“Given how low interest rates currently are, it is possible that future asset purchases will not ease financial conditions by as much as they have in the past,” she said. “It is also possible that easier financial conditions, to the extent they do occur, may not provide the same boost to the economy as they have in the past,” Pianalto said.
Fed presidents rotate voting on monetary policy with Pianalto, 58, not voting until next year.
She is the longest-serving regional bank president, having led the Cleveland Fed since 2003.