Fed Minutes: Progress of recovery could open the door to reduce asset purchases

The Federal Reserve published the minutes of the Federal Open Market Committee meeting for April. Some Fed officials shared that a reduction in the $ 120 billion monthly asset purchase program could start at future meetings. US 10-year bond yield increased to 1.68 percent.

It published the minutes of the Federal Open Market Committee meeting held on 27-28 April. The minutes stressed that Fed members agreed that the economy is still far from targets, but that progress in the economy could open the door to reducing the asset purchase program.

‘HIGH INFLATION TEMPORARY’

According to the minutes, respondents predicted high inflation but argued that it was temporary. Some Fed officials shared that a reduction in the $ 120 billion monthly asset purchase program could start at future meetings. “Some members stated that the upcoming meetings might be appropriate at some point to begin discussing a plan to adjust the pace of asset purchases if the economy continues to make rapid progress towards the committee’s goals,” the minutes said.

At the meeting held on April 27-28, the committee committed to continuing asset purchases at the same pace while keeping the interest rates constant.

USA 1O-YEAR BOND INTEREST INCREASED

The dollar index rose 0.40 percent to 90.13 after the minutes were published. US 10-year bond interest rose to 1.68 percent.