The US Central Bank (Fed) could start reducing its asset purchases as early as November, and end them in the middle of next year, according to the minutes of the latest monetary policy meeting, released on Wednesday.
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“Participants (at this meeting) noted that if a decision to start reducing procurement is made at the next meeting, the reduction process could start (...) in mid-November or mid-December »
, Underlines this report of the meeting of September 21 and 22.
The Fed's Monetary Committee will meet again on November 2-3.
"On the right track"
“Most participants felt that provided the economic recovery remains on track overall, a gradual downsizing process concluded around the middle of next year would likely be appropriate,”
the document said. Asset purchases could then be reduced to the tune of $ 10 billion each month for Treasury bills, and $ 5 billion for MBS (financial products backed by real estate loans), it is further specified. At this rate, it would take eight months to bring these purchases to zero.
Since the start of the crisis, the Fed has injected the markets with 120 billion dollars in liquidity each month, through the purchase of 80 billion treasury bills and 40 billion MBS.
This made it possible to fluidify credit and push rates down to help the economic recovery.
Now that the American economic recovery is on track, the institution intends to start putting away its anti-crisis tools, but its officials want, before launching the movement, to be certain that the recovery is sustainable.
