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At a meeting held November 2-3, the Federal Open Market Committee (FOMC) emphasized the need to be flexible in terms of the pace at which bond purchase programs shrink and when rate hikes begin. After the meeting, economic data showed accelerated inflation.
In the agenda released on the 24th, participants emphasized that “maintaining the flexibility to make appropriate policy adjustments from the perspective of risk management should be a basic principle in implementing policies. I did. “
“Some participants have said that if inflation continues to exceed levels consistent with the FOMC’s targets, the FOMC will adjust the pace of asset purchases and begin raising the federal funds (FF) interest rate guidance target range. Participants insisted that they should be prepared to accelerate from the time they currently envision. “
At the last meeting, the FOMC decided to keep the fed funds rate guidance target range at 0-0.25%. It has also decided to start a gradual reduction in bond purchases, which had been progressing at a monthly pace of 120 billion dollars (about 13.85 trillion yen). Regarding the reduction of bond purchases, the process is expected to be completed by the middle of 2022.
Original title:Fed Stressed Flexibility on Taper, Rates at Last Meeting (1)（抜粋）
(Add and update paragraphs 3 and 4)