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Minutes say US Fed plans to begin trimming stimulus in “the coming months”

Saturday, November 23rd 2013 - 06:26 UTC
Full article 5 comments
Bernanke will be chairing his last FOMC meeting December 17/18 Bernanke will be chairing his last FOMC meeting December 17/18

The US Federal Reserve officials said they plan to begin trimming the central bank's stimulus efforts in “the coming months”. They believe that the US recovery is strengthening, according to minutes their October meeting.

 The US central bank is currently engaged in an 85bn a month bond buying program to lower interest rates and boost the US economy.

In the meeting minutes, released on Wednesday, policy makers said they “generally expected that the data would prove consistent with the Committee's outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months”.

However, they also stressed that investors should be assured that short-term interest rates will remain low for an extended period of time - perhaps even after the unemployment rate drops below 6.5% benchmark.

Many meeting participants indicated a desire to better coordinate the Fed's communication policy regarding the easing back of bond purchases, and of interest rates setting.

Mortgages rates spiked over the summer, after outgoing Chairman Ben Bernanke indicated the central bank was considering a slowing of its easy money policy.

They only declined after the Fed, in a surprise move, decided to maintain the program- known as quantitative easing - after its September meeting.

The last Federal Open Market Committee meeting under Bernanke's leadership is scheduled to take place from 17 - 18 December.

The minutes also note that Fed policymakers had an unscheduled conference call on 16 October - just before the US was set to breach the so-called debt ceiling and potentially default on its debt obligations.
According to the minutes, policymakers agreed that had Congress been unable to come to an agreement, the situation would have been “potentially catastrophic”.

Categories: Economy, Politics, United States.

Top Comments

Disclaimer & comment rules
  • ChrisR

    It's a pity then that the unemplyment rate shot up last month!

    Still, the woman is coming on 1st February, so it will be one cunt out and another in.

    With consumer prices falling to 1% annually it looks suspiciously like the Japanese syndrome to me.

    Nov 23rd, 2013 - 10:57 am 0
  • DanyBerger

    Another political move to let the bomb set for he new comers ...
    Real unemployment in US (U6) is 3 time higher.

    Nov 23rd, 2013 - 11:15 am 0
  • golfcronie

    Its the USA, not Argentweener, the article is about.

    Nov 23rd, 2013 - 03:47 pm 0
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