FRANKFURT/NEW YORK (Reuters) – Two senior Federal Reserve officials on Tuesday played down chances that the U.S. central bank would signal a readiness to taper bond buying at its meeting next month, dampening speculation the Fed might soon dial back its ultra-easy policy.

New York Federal Reserve Bank President William Dudley and St. Louis Fed chief James Bullard, both of whom will vote at the June 18-19 meeting, made clear further economic progress was needed before they would support curtailing bond purchases.

NEW YORK, May 21 (Reuters) – The U.S. economy’s ability in
coming months to weather lower government spending and higher
taxes will be key to the Federal Reserve’s decision whether to
reduce monetary accommodation, an influential Fed official said
on Tuesday.

In a speech that could dampen some expectations of an early
reduction in the U.S. central bank’s bond buying program, New
York Fed President William Dudley said he cannot at this point
be sure whether policymakers will next reduce or increase the
amount of purchases, due to the “uncertain” economic outlook.

By Ann Saphir and Jonathan Spicer

(Reuters) – The beginning of the end of the Federal Reserve’s massive bond-buying program might come sooner than many investors think if recent gains in the U.S. labour market do not prove fleeting.

Much will depend on how economic data, which has given mixed signals for growth prospects, develops over the next few months. Reports on job growth in particular will go a long way in helping Fed officials determine whether the time is right to trim the pace of their $85 billion in monthly purchases.

By Ann Saphir and Jonathan Spicer

(Reuters) – The beginning of the end of the Federal Reserve’s massive bond-buying program might come sooner than many investors think if recent gains in the U.S. labor market do not prove fleeting.

Much will depend on how economic data, which has given mixed signals for growth prospects, develops over the next few months. Reports on job growth in particular will go a long way in helping Fed officials determine whether the time is right to trim the pace of their $85 billion in monthly purchases.