Arab Today, arab today us fed plans to end asset purchases in october
Last Updated : GMT 11:29:34
Arab Today, arab today
Arab Today, arab today

US Fed plans to end asset purchases in October

Arab Today, arab today

Arab Today, arab today US Fed plans to end asset purchases in October

The Federal Reserve
Washington - XINHUA

The Federal Reserve has decided to end its asset purchase program in October if the U.S. economy stays on track, according to the minutes of the Fed's latest monetary policy meeting released on Wednesday.
"If the economy progresses about as the Committee expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting," the minutes of the Fed's June 17-18 meeting said.
This is the first time the Fed has clarified the exact end date of its open-ended asset purchase program, also known as QE3, which was launched in September 2012 to push down long-term interest rates and stimulate the U.S. economy.
The Fed has been trimming its asset purchase program by 10 billion U.S. dollars every policy meeting this year, as the economy gradually picks up. The central bank is currently buying 35 billion U.S. dollars of U.S. Treasuries and mortgage-backed securities a month.
The Fed is expected to continue to reduce its asset purchases by 10 billion dollars for each of its July and September policy meetings, and end the program in the October meeting with a final reduction of 15-billion-dollar purchases, according to the minutes.
Analysts said the end of asset purchases will have no bearing on the timing of the first interest rate hike. The Fed has said it is appropriate to keep its benchmark short-term interest rates near zero "for a considerable time" after the asset purchase program ends.
There is "no mechanical formula for what a considerable time means," Federal Reserve Chair Janet Yellen said in a press conference last month, adding that it depends on how the economy progresses. Most market participants predict the central bank will wait until mid-2015 to start raising interest rates.
The minutes showed that Fed officials had deep discussions about how to hike interest rates when the time comes. Fed officials generally agreed that the rate of interest on excess reserves (IOER) that banks hold at the Fed should play a "central" role in monetary policy normalization and set a ceiling for its target interest rate.
The overnight reverse-repo facility, a measure for non-bank institutions to make deposits at the Fed, will have an interest rate set below the IOER rate and help firm the floor for its target interest rate.
The spread would be "near or above the current level of 20 basis points" and give the Fed adequate control over market interest rates, the minutes said.
Most Fed officials also agreed to reinvest the proceeds of securities that mature on its balance sheet until interest rates had been increased.
The minutes said that the U.S. economy was "rebounding" in the second quarter following "a surprisingly large decline in real GDP" in the first quarter of the year.
Fed officials continued to expect the U.S. economy to expand over the next two and a half years as a result of accommodative monetary policy, diminished drag from fiscal restraint, further gains in household net worth, and rising employment and wages.
The U.S. employers added 288,000 jobs in June, posting the fifth consecutive month with job gains above 200,000, and the unemployment rate dropped to an almost six-year low of 6.1 percent, the latest sign that the world's largest economy is strengthening, the Labor Department said last week. Enditem

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 us fed plans to end asset purchases in october Arab Today, arab today us fed plans to end asset purchases in october

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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