Fed minutes of the last meeting of the have been published. In the minutes, Fed officials signaled a reduction in asset purchases in November or December.

The minutes of the September 21-22 meeting of the Federal Open Market Committee (FOMC) in the USA were published today. There are signs in the minutes that the bond-buying program will start to be reduced in November. It also showed that they are reviewing plans for the possibility of ending the purchases in the middle of next year.

It is seen in the minutes of the September 21-22 meeting that high inflation and strong demand may require tighter monetary policy next year. Minutes revealed that there is a strong consensus on how to begin reducing purchases of $120 billion monthly Treasury paper and mortgage-backed securities.

Fed Minutes: Recovery is Going Well

“The economic recovery is generally on track,” the FOMC minutes said. The reports also said it would likely be appropriate to complete the asset reduction process in the middle of next year.

In addition, they emphasized that if a decision on asset reduction is made at the next meeting, the reduction process in monthly purchases could begin in mid-November or mid-December. Some respondents at FOMC said inflation will remain high in 2022. They also state that risks are on the upside, and inflation may persist longer than expected. In particular, labor and other supply shortages are said to be almost certain to last longer than currently envisaged.