Fed to Start Tapering as Early as Mid-November

September FOMC Meeting Minutes Released
Start Expected as Early as Mid-November, No Later Than December
Majority of Members Express Inflation Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] It has been revealed that members of the U.S. Federal Reserve (Fed) have reached a consensus to begin tapering asset purchases as early as November.

On the 13th (local time), the minutes of the September Federal Open Market Committee (FOMC) meeting released by the Fed stated that members mentioned the possibility of reducing economic support measures as early as November.

The minutes introduced, "Members generally assessed that the economic recovery is progressing smoothly and considered a gradual reduction to complete asset purchases by around mid-next year to be appropriate."

The minutes also conveyed that members expected that if tapering is decided at the next meeting, it would be implemented from mid-November or mid-December. The completion of tapering was forecasted for July next year.

According to the minutes, the Fed is expected to decide on tapering at the FOMC meeting held on November 2-3, and only the procedure to determine the implementation date remains.

Members emphasized that the start of tapering is not a signal for an interest rate hike.

There is also a noticeable shift in the Fed’s stance on inflation being temporary.

The minutes stated, "Most members believe that supply chain bottlenecks and labor shortages are likely to have a prolonged impact on rising inflation." The minutes noted that only a minority of members expected inflation to decline.

This content was produced with the assistance of AI translation services.