Finance

Fed Minutes Released – Economy News

Minutes from the September 21-22 meeting of the Federal Open Market Committee (FOMC) in the US were released today. Minutes showed that Fed members reviewed plans at last month’s meeting for a reduction of the bond purchase program that would begin in November and the possibility of finalizing the purchases in the middle of next year.

Minutes from the Sept. 21-22 meeting revealed that FOMC members were in strong consensus on how to begin reducing their monthly purchases of $ 120 billion in Treasury bills and mortgage-backed securities amid high inflation. and strong demand that may require tighter monetary policy next. year.

‘RECOVERY IS GENERALLY UNDERWAY’

While the FOMC minutes say that “participants assessed that the economic recovery is generally on track and that a gradual asset reduction is likely to be completed by the middle of next year,” it is stated that if a decision is made to reduce the reduction of assets At the next meeting, the reduction in monthly purchases will be in November or December, they emphasized that it can begin in the middle of the month.

Also in the minutes, “the participants reiterated that the standard of” significant advance “regarding the initiation of a reduction in the purchase of assets is very different from the reference in the oral advance of the Committee on federal funds interest rates. included.

A NEW RECORD ON THE DOLLAR

While some respondents to the FOMC indicated that inflation will remain high in 2022, risks are to the upside, they said that upside risks to inflation may linger longer than expected, particularly if labor and other supplies shortages proves to last longer than currently projected.

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