“……..Bullard told Liesman:
I think unemployment will continue to tick down through 2013. If you look at the last three years – about seven-tenths per year on the unemployment rate – if we got that this year, we’d be down at 7.1 percent by the end of the year, something like that. That would probably be substantial improvement, and the Committee could think about removing accommodation on the balance sheet side of the policy at that point.
Liesman asked for clarification, and Bullard continued:
If you got down close to 7 percent, then you’re within a half a point of your 6.5 percent on the interest rate side, and I think clearly the intention is to pull back balance sheet policy sometime before you would start thinking about raising the rate.
Again, this isn’t inconsistent with what was said in the minutes, but it offers a big clue as to when the Fed might decide to pull back…”
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