An improving economy would allow the Federal Reserve to reduce and eventually end its stimulatory bond buying programme, but inflation needs to be closely watched, San Francisco Federal Reserve Bank President John Williams said on Monday. Williams said he largely stuck by his view, expressed in a speech in April, that the bond buying programme could slow in the summer and end by the end of the year. "It is really a question for me of watching for continuing signs of improvement in the U.S. labour market ... watching carefully what the underlying inflation rate is and what the outlook for inflation is," he told ... (full story)