22 Aug 2013
Flash: September Fed meeting still projected for tapering – Investec
FXstreet.com (New York) - Minutes for the 31 July FOMC meeting, released last night, made it clear it was a case of when not if the Fed will start to taper its QE3 program, with September the current favorite, notes Jonathan Pryor, Corporate Treasurer at Investec.
Key quotes
There was support from "almost all committee members" for the Fed’s existing plan to begin to scale back its purchases later this year, while some members believed it was appropriate to be patient and to evaluate additional information on the economy before acting.
“Economic data from US has pointed toward an improving economy, with a further decline in unemployment to 7.4% (from 7.6%), which may be enough to tip the balance of likelihood in favor of a small taper, at the next FOMC on 18 September.”
However “the next monthly jobs report in a couple of weeks’ time will be important in determining whether the Fed bites the bullet next month.”
Key quotes
There was support from "almost all committee members" for the Fed’s existing plan to begin to scale back its purchases later this year, while some members believed it was appropriate to be patient and to evaluate additional information on the economy before acting.
“Economic data from US has pointed toward an improving economy, with a further decline in unemployment to 7.4% (from 7.6%), which may be enough to tip the balance of likelihood in favor of a small taper, at the next FOMC on 18 September.”
However “the next monthly jobs report in a couple of weeks’ time will be important in determining whether the Fed bites the bullet next month.”