Fed Unlikely to End Bond Buying Yet But Could Give More Details Soon

The Federal Reserve likely will decide at the end of a policy meeting on Wednesday to continue buying bonds at an $85 billion monthly pace, but it could alter an accompanying statement to spell out the possibility of scaling back purchases later this year.

Even if it does, the Fed is unlikely to clarify whether that process will begin in September, as financial markets expect, or later. Fed officials would prefer to see more evidence that the recovery in the job market is first fully entrenched.

The 19 members of the U.S. central bank’s policy-setting committee will conclude a regular two-day gathering with a statement at 2 p.m. (1800 GMT).

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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