Fed Signals Asset Purchases Likely to Slow This Year

Federal Reserve officials last month indicated they were on track to begin reversing their easy-money policies later this year, despite lingering differences over when exactly to pull back support for an economy growing faster than they expected earlier in the year.

Minutes of their July 27-28 Fed meeting, released Wednesday, revealed an emerging consensus to begin scaling back the bank’s $120 billion in monthly purchases of Treasury and mortgage securities at any of the officials’ three remaining policy meetings this year.

“Most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes said.

The minutes said several officials favored reducing asset purchases in the coming months in order to better position the Fed to potentially raise interest rates if the economy strengthens further next year, while others thought the Fed could wait until early next year because they want to see stronger evidence that the job market has healed from the effects of the coronavirus pandemic.

IT WAS RED QE INIFINITY THAT INFLATED THE US ECONOMY AND BY PROXY THE ENTIRE WORLD SYSTEM WAS PROPPED UP BY RELENTLESS MONEY PRINTING PRESSES

ANY SLOW DOWN, STOPPING OR REVERSAL OF PUMP PRIMING IS BAD FOR THE BLOATED STOCK MARKET IN GENERAL & THE EXTREMELY BLOATED TECH BUBBLES WITH P/E FROM 50 TO OVER 100 P/E

THIS TELLS US TO RUN FROM HOT AIR BALLOON STOCKS (PUMPED UP) TO REAL SOLID TRADITIONAL STOCKS