Federal Reserve changes on hold for now
Posted on Wednesday, November 6, 2013 at 11:15:58 AM
A lot is riding on the Federal Reserve. The central bank's bond buying policy has directly impacted several economic elements, including residential financing. However, more fiscal progress will need to occur before any changes can be made.
According to several top policymakers, the Fed is in no rush to adjust its asset purchases, Reuters reported. Chairman Ben Bernanke has previously stated that there is no timeline, only a measured response to economic factors.
At the moment, the $85 billion long-term asset purchases made by the Fed each month have helped keep residential financing rates low, according to the media outlet. A recent meeting for the central bank voted to keep that policy in place, at least for the time being.
Officials such as Fed governor Jerome Powell and Boston Fed president Eric Rosengren support the current stimulus, and stress patience from all those involved.
However, another member of the central bank still keeps the possibility of tapering open as early as December. St. Louis Fed president James Bullard told The Wall Street Journal in an interview that it is possible that the mid-December meeting could result in a cutback.
He cited stronger job growth and solid economic progress as possible reasons a change could be in the works.