FOMC Minutes Reveal Fed May Curb Economic Support Program Before Year End
FOMC Minutes Suggest QE Tapering by Year-End The minutes for June's meeting of the Federal Open Market Committee (FOMC) suggest that committee members are mostly in agreement that the current quantitative easing program (QE) should begin winding down by year end, but the committee minutes are very clear concerning the committee's intention to monitor inflation and ongoing economic and financial developments before taking action to reduce the current rate of QE. The Fed currently purchases $85 billion monthly in Treasury securities and mortgage-backed securities (MBS). Investors fear that if the Fed rolls back QE too soon or too fast, it…