by Calculated Risk on 4/09/2011 06:26:00 PM

Earlier:
• Summary for Week ending April 8th

From Reuters: Fed's Yellen says too soon to start reversing policy

"Economic conditions do not yet call for the Fed to exit from its unconventional policies," Janet Yellen, Fed Vice Chair, said during a panel discussion at Yale University in New Haven, Connecticut.
...
Fed officials are aware of the need to ease up on the policy gas pedal at the appropriate time, and has a "suite of tools" to help, Yellen said.

In particular, purchases of securities beyond the level the Fed has committed to could raise doubts about the Fed's ability to exit gracefully.

"That could lead to an undesired rise in inflation expectations," she said. A precise communications strategy will be key to guiding market expectations, Yellen noted.

It is pretty clear that the Fed will complete the $600 billion QE2 as scheduled in June.

Note: I'd like to see the actual comments about additional purchases (this article just paraphrases Yellen). If the economy weakens later this year, I'm pretty sure Yellen would support additional purchases.