The Federal Open Market Committee left the $85 billion a month asset-purchase program unchanged at the October 29-30 meeting, but thought that the labor market would continue to improve enough to soon begin the long-awaited taper of the program.
But policymakers felt at the time that the labour market would continue to improve enough to soon begin the long-awaited taper of the program.
US markets fell on the news of a potential slowing of easy money.
In the meeting minutes, released on Wednesday, policy makers said they “generally expected that the data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months”.
However, they also stressed that investors should be assured that short-term interest rates will remain low for an extended period of time – perhaps even after the unemployment rate drops below 6.5% benchmark.
Many meeting participants indicated a desire to better coordinate the Fed’s communication policy regarding the easing back of bond purchases, and of interest rates setting.
Mortgages rates spiked over the summer, after outgoing Chairman Ben Bernanke indicated the central bank was considering a slowing of its easy money policy.