Minutes from the FOMC meeting that took place in September has just been released. Investors were hoping for more clues on the central bank tapering plans. Here are key takeaways from the document:
- The Fed made no decision to proceed with a moderation of asset purchases in September, but policymakers generally assessed that, provided that the economic recovery remained broadly on track, a gradual tapering process that concluded around the middle of next year would likely be appropriate.
- Participants noted that if a decision to begin tapering purchases occurred at the next meeting, the process of tapering could commence with the monthly purchase calendars beginning in either mid-November or mid-December.
- Policymakers also considered an illustrative path of tapering, including monthly reductions in the pace of asset purchases, by $10 billion in the case of Treasury securities and $5 billion in the case of agency mortgage-backed securities (MBS).