Fed policy makers, about half felt the U.S. Central Bank bond-buying stimulus should be able to bring a halt this year when they met in June, but many wanted reassurance U.S. employment recovery is on solid ground prior to any policy retreat.
Eventually, most of the U.S. Central Bank's 19 decision-makers think it is the best to have Fed Chairman Ben Bernanke has laid a roadmap, in a press conference after the meeting how they might wind down the so-called quantitative easing program from the last meeting showed Wednesday.
In doing so, Bernanke said the Fed may slow the pace of its bond purchases end of the year to nearly 2014 medium-term economic stimulus plan to bring the eye.
"Several members of the judge to reduce the asset purchases may soon be guaranteed, Minutes, June 18-19 meeting said." Even so, "Many members expressed the prospects in the labor market will be further improved, it must be appropriate to slow down the pace of asset purchases. "
Minutes of the financial markets see-sawed after the announcement, investors trying to understand the Fed's bond-buying program in the short-term correction possibilities. But stocks higher in after-hours trading, after rising U.S. Treasury bonds, Bernanke reiterated that monetary policy needs to stay for the foreseeable future, the United States cast doubt on the strength of the labor market.
Fed's June meeting in June, showing surprising strength in January the U.S. government report on the labor market held before release.
Policy decision in June, the central bank policy group consists of 12 voting members, the extent to which this group supports Bernanke's schedule but minutes silence.
"Everyone seems to have their own opinion, on tapering should begin in San Francisco agency fixed income analysis at Action Economics, Managing Director Kim Rupert said," I think this is more uncertain than ever before possible. "Previously expected in September might be a good starting point for this timeline, which led to more questions."
Voting Fed policy makers believe that wise cut bond purchases as soon as possible, two thought it should do more than their expected benefits, "the procedures to prevent potential negative consequences."
Next few minutes, provide economic forecasts are provided from all 19 top Fed officials view - voting and non-voting - SUMMARY display, a thought should immediately end its asset purchase program, while others think it should be about half of the closed end of the year.
Four non-voters into voting slots rotation early next year, many expect Bernanke to leave work after 8 years.
Investors in the Fed's possible path, struggling to get a grip.
"We do not know how you can get from 'more' tinny start seeing half before the end of this year bond purchase needs to see labor income, saying," In the meantime, many other Fed officials believe that the 2014 bond-buying Adrian Ann Miller, GMP Securities. "We are very good at math, but we added a lot, 'few' and 'about half to 100%."
Bernanke, who gave in Cambridge, Mass., an economic conference last Wednesday that the Fed needs to maintain stimulative monetary policy, in view of the low level of inflation of 7.6% unemployment rate, "If there is any exaggeration of the labor market health. "
The overall message is to stay, "he said." In the foreseeable future, a "highly accommodative monetary policy is necessary."
Panic
Recently, global investors have been raised from mild bout of panic, Bernanke is expected to outline the Fed to end its bond purchases recovered. The Fed has purchased $ 8.5 billion worth of one month, the U.S. government and mortgage-related debt.
Chorus officials tried to reassure traders buy assets at the end of imminent interest rate does not lead to financial market fears have been allayed.
"Many members said that unlike the appropriate level of decision making in the federal funds rate pace and composition of asset purchases," the minutes said.
Whether the market has been fully received the news is not clear. 10-year U.S. Treasury yields have risen by a full percentage point in just two months, always close to its highest level since 2011.
Yields rise, the price of U.S. Treasury debt the contrary, has been active in the mortgage market slowdown, which has been the key to economic rebound.
Month upward revisions to the U.S. government a few months before June employment report showed strong growth in 195,000 jobs. The unemployment rate held steady at 7.6%.
Economists say this improvement, of course, the central bank may keep its meeting in September cut its bond purchases. (FED / R)
In June this year, a number of Fed officials are worried not only about employment prospects, but the pace of economic growth, as well as meeting minutes show. Many economists believe that economic growth is less than 1% per year in the second quarter, although most look rebounded in the second half.
"Some people (officials) said that they would need to see more evidence that the expected acceleration of economic activity will occur before, reducing the pace of asset purchases," the minutes said.
 



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