Minutes from the FOMC meeting that took place in September has just been released. Investors were hoping for more clues on the central bank tapering plans. Here are key takeaways from the document:
- The Federal Reserve keept the fed funds rate at 0-0.25% and bond-buying at a $120 billion monthly pace during the June 2021 meeting as widely expected.
- The central bank did not /signaled it is appropriate to begin discussing a plan for tapering although changes are expected in August or September only.
- Policymakers will also release new economic forecasts, with the so-called “dot plot" projections of the target interest rate expected to show some officials changed their forecast to support a rate hike in 2023.
- On the price front, the Fed may lift inflation forecasts for this year but the surge should be transitory and GDP growth is seen rising to 6.6%.