Fed board may push for further guidance on unwinding of QE
A NUMBER of Federal Reserve rate-setters want a further form of forward guidance for the US quantitative easing (QE) policy, giving investors extra information on when the purchased assets might be unwound.
Minutes released yesterday from the Fed’s latest policy meeting said some decision-makers thought it “would be useful to provide additional information” on how long the central bank will keep rolling over its assets and maintaining its balance sheet.
The Fed’s policymakers are also beginning to talk about the normalisation of monetary policy, with minutes showing the committee discussed “prudent planning”, insisting that the move did not indicate change would begin soon.
The US Senate yesterday also voted heavily in favour of former Bank of Israel chief Stanley Fischer joining the Fed’s board.