Fed: “Progress” made, still not enough to warrant a near-term tapering – Wells Fargo
|The FOMC kept the monetary policy unchanged on Wednesday. Analysts at Wells Fargo, look for Federal Reserve officials to begin dropping hints in the next month or two about an eventual tapering of asset purchases. They expect a formal announcement at the December FOMC meeting.
Key Quotes:
“The FOMC acknowledged that "progress" has been made toward reaching the Committee's goals of maximum employment and price stability. But probably not enough progress yet to warrant a near-term commencement of tapering asset purchases.”
“It does not seem that the FOMC is in any hurry to taper, although the Committee does seem to acknowledge that the time is drawing nearer.”
“We look for the FOMC to make a formal announcement regarding the tapering of its asset purchases at the December 14-15 meeting, and we expect that the Fed will begin the process of winding down its purchases early next year. But before that formal announcement is made, we expect that Fed officials will hint that tapering will be forthcoming.”
“The minutes of today's meeting are scheduled to be published on August 18. We will be reading those minutes closely for any explicit references to the timing of tapering.”
“We continue to forecast that the FOMC will keep its target range for the fed funds rate unchanged through at least the end of next year.”
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