Arab Today, arab today fed sees stimulus exit in october
Last Updated : GMT 22:02:46
Arab Today, arab today
Arab Today, arab today

Fed sees stimulus exit in October

Arab Today, arab today

Arab Today, arab today Fed sees stimulus exit in October

US Federal Reserve
Washington - AFP

The Federal Reserve plans to end bond purchases in October, winding up a five-year stimulus effort to support the US economy, central bank June meeting minutes showed Wednesday.
Participants of the June 17-18 Federal Open Market Committee meeting saw the economy rebounding from a weak first quarter, largely blamed on bad weather.
"If the economy progresses about as the Committee expects... this final reduction would occur following the October meeting," the minutes said.
Though the Fed previously has indicated it would end asset purchases by year-end, this was the first time an explicit month has been named. Most Fed-watchers had expected the buying to end in October.
The FOMC has been tapering the quantitative easing (QE) program in incremental steps of $10 billion this year, bringing monthly bond purchases down from $85 billion in December to $35 billion in June.
After $10 billion cuts expected from each of its July and September meetings, the policy makers agreed a final $15 billion reduction could be decided in October.
Three rounds of QE, the Fed's exceptional stimulus aimed at holding down longer-term interest rates, has swollen the Fed's balance sheet to $4.3 trillion.
The FOMC expects it would not begin raising its near-zero benchmark interest rate for "a considerable time" after the asset purchase program ends, the minutes said, "especially if projected inflation continued to run below the Committee's 2 percent longer-run goal."
Though asset purchases end, the Fed still will continue to reinvest the funds from the bonds it holds. "Many" participants agreed that ending reinvestments at or after the time of raising rates would be best, with "most" of them preferring to end them "after liftoff."  
The minutes reaffirmed the Fed's expectations that a rate hike would not come before mid-2015. The federal funds rate has been at a record low range of zero to 0.25 percent since late 2008.
"The FOMC minutes once again included some discussion about details of eventual tightening, but they also made clear that such tightening is not imminent -- the discussion is just part of long-term planning," said Jim O'Sullivan, chief US economist at High Frequency Economics. "Overall, no major surprises."
Policymakers at the meeting weighed evidence that inflation had moved up recently from low levels earlier in the year toward the central bank's 2.0 percent target.
The Fed's preferred inflation measure, the personal consumption expenditures price index, has climbed for three straight months, hitting a 1.8 percent gain in May from a year ago.
Some officials were worried that inflation was heating up, while others expressed concern about the persistence of below-trend inflation in the economy, still struggling to recover five years after the end of the Great Recession.
- Market rally concerns -
Policy makers also appeared concerned about the strong run-up in the stock markets, the minutes showed, with a discussion on "whether some recent trends in financial markets might suggest that investors were not appropriately taking account of risks in their investment decisions."
Citing that reason, they agreed that the Fed should emphasize in its communications that its policy decisions depend on the evolution of the economic outlook.
Fed Chair Janet Yellen, in a speech a week ago, said she saw "pockets" of increased risk taking across the financial system, but emphasized that regulatory action was the better approach, rather than the "very blunt tool" of monetary policy.
The potential impact of developments abroad on US monetary policy were also discussed.
A couple of officials noted moves toward more accommodative policies by the European Central Bank and the Bank of Japan had boosted the economic growth outlook for those areas, potentially helping US inflation return to the Fed target.
"Several others, however, remained concerned that persistent low inflation in Europe and Japan could eventually erode inflation expectations more broadly," the minutes said.
"And a couple of participants expressed uncertainty about the outlook for economic growth in Japan and China."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed sees stimulus exit in october Arab Today, arab today fed sees stimulus exit in october

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed sees stimulus exit in october Arab Today, arab today fed sees stimulus exit in october

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday