Fed Puzzles Over Message on Easy Money
Posted at 3:48 p.m. on Nov. 20, 2013
Federal Reserve officials “still expect to start pulling back on the central bank’s $85 billion-a-month bond-buying program ‘in coming months,’ but they are looking for ways to stress that they will keep short-term interest rates low for a long time after it ends,” the Wall Street Journal reports.
“Officials generally expected the labor market outlook would improve enough to ‘warrant trimming the pace of purchases in coming months,’ according to minutes of their Oct. 29-30 policy meeting. The minutes were released Wednesday after the customary three-week lag. Fed officials voted at the October meeting to leave the bond-buying program unchanged and haven’t said when they’ll start trimming the bond purchases.”