FOMC minutes signal tapering of QE could begin as soon as mid-November

( )

One of the major takeaways from the minutes of the September Federal Open Market Committee (FOMC) meeting was a firming up of plans to begin reducing the Fed’s bond buying stimulus program by “mid-November or mid-December.” Initial tapering efforts will likely include cutting $10 billion a month in Treasury buys and $5 billion a month in mortgage-backed securities purchases. Currently, the Fed buys $80 billion in Treasuries each month and $40 billion in mortgage-backed securities.

Participants reaffirmed the committee’s “substantial further progress” standard regarding its asset purchases was distinct from its criteria for any increase in the federal funds rate and “that a policy shift toward a moderation of asset purchases provided no direct signal about its interest rate policy. Rather, the Committee had articulated a different, and more stringent, test concerning the conditions that would need to be met before it started raising the target range for the federal funds rate.” Several participants indicated an increase to that rate may be possible by late 2022.

The next FOMC meeting will occur Nov. 2-3.

 

Latest News

H&P Report negative compared to pre-report expectations
H&P Report negative compared to pre-report expectations

Nearly every category topped the average pre-report estimates.

After the Bell | March 28, 2024
After the Bell | March 28, 2024

After the Bell | March 28, 2024

Pro Farmer's Daily Advice Monitor
Pro Farmer's Daily Advice Monitor

Pro Farmer editors provide daily updates on advice, including if now is a good time to catch up on cash sales.

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.