Last Wednesday, a top US Federal Reserve official said that he was open-minded on the proposed reduction of stimulus this month. Investors had been expecting that the Central Bank would cut down its bond-buying program. Meanwhile, a Reuters reported another policymaker said that the US central bank should actually do more for the country's economy.
Comments made by Federal Reserve's San Francisco President John Williams and Minneapolis Fed President Narayana Kocherlakota had reflected lingering uncertainty in cutting the QE3. This was before two weeks before the policymaker of the Federal Reserve decide whether or not to adjust USD85 billion monthly bond-buying program.
The quantitative easing program, known as QE3, was launched a year ago. The program was the biggest and massive effort of the Fed's move to boost growth and employment after the Great Recession in the country. The unemployment rate in the US was at 7.4% last July, which was lower from 8.2% last year. The figures indicated to many economists that the Federal Reserve is now ready to reduce its bond buying programs.
Join the Conversation