U.S. Federal Reserve continued reduction of monetary stimulus programs, reducing the amount of buying assets for another $ 10 billion to reach $ 25 billion a month.
Thus, members of the Federal Open Market Committee (Federal open market committee) 6 times already decided to reduce the size of the program Q3. Based on 2-day FOMC meeting, it was announced that the monthly buyings Treasuries (U.S. bonds of the USA) are reduced by $ 5 billion to $ 15 billion, while the purchase of securities, which are secured by mortgage bonds - mortgage-backed securities, MBS, also lowered by $ 5 billion to $ 10 billion Thus, assets are now the U.S. Federal Reserve will buy $ 25 billion earlier this figure was $ 35 billion.
This decision was approved by 9 out of 10 members of the Federal Open Market Committee, only the head of the Philadelphia FRS, Charles Plosser spoke against. In the U.S. Federal Reserve said that statistics show that economic activity recovered in the second quarter of 2014 improved the situation on the labor market, the unemployment rate declined. Consumer spending increased at a moderate pace, although the company, in turn, increase capital investment. However, in the U.S. real estate sector remains slow recovery process. Inflation is at a level lower than the long-term targets set by FOMC, but long-term inflation forecasts are stable.
How long it will be saved the current level of interest rates at the level of 0% -0.25%, it will depend on that, when the U.S. Federal Reserve will reach goals on employment and inflation at 2%. According to the forecasts of the Committee, the current level of interest rates will persist even after a long period after finishing the program of monetary stimulus, especially if inflation remains below the target level.
FRS Chairman Janet Yellen did not hold a traditional press conference on the results of the meeting that were held. During the meeting, they failed to answer the key questions that concern investors, namely, when to expect the beginning of rising interest rates in the United States, noted in Optionova (rated among the TOP Forex Brokers of Masterforex-V World Academy http://www.masterforex-v.com/). Perhaps, this will be known at the meeting, scheduled for October 28-29 this year, but hints will feature at the September meeting.
In addition, investors are wondering whether the FRS will reduce to a minimum the effects of monetary tightening.
