(Fed) The Federal Reserve minutes for the July 27-28 meeting confirms that officials have the intention to pull back the pace of the $120 billion monthly purchases.
The Federal Reserve officials said that as long as the economy continues to show recovery as anticipated, it could be appropriate to taper the bond purchases this year.
The Fed officials said that the economy had hit the inflation goal and was closing on achieving progress in job growth.
The officials were still adamant that the tapering was not a precursor for rake hikes, with some members preferring that Fed wait until early next year to taper bond purchases.
The officials still see a highly uncertain outlook due to the ongoing Delta variant outbreak, with some members pointing to potential upside inflation risks.
Fed members also raised concerns about elevated asset valuations, blaming it on relaxed policy.
Markets react. DJI is down -1.08%, DXY is up +0.21%.
