MW: Fed's Pianalto calls March job data disappointing
By Greg Robb
WASHINGTON (MarketWatch) -- The March nonfarm payroll report was disappointing, but more data are needed before conclusions can be drawn about the underlying strength of the labor market, said Sandra Pianalto, president of the Cleveland Federal Reserve Bank, on Monday. In a speech to a business group in Palm Beach, Fla., Pianalto said overall recent developments still point to continued moderate growth for the U.S. economy this year. Pianalto said the Fed could slow its $85 billion-a-month pace of purchases if the labor market improved or if the central bank wanted to mitigate potential risks from a large balance sheet, that could reach $4 trillion by the end of the year if the Fed continues buying bonds at the current pace. "Even continuing asset purchases at a reduced pace, and limiting the size of the overall program, would enable the Fed to continue adding accommodation and providing meaningful support to economic growth and job creating," said Pianalto, who is not a voting member of the Fed's interest-rate setting committee this year.
