FOMC decided to start reducing monthly net asset purchase by USD 10B for treasury securities and USD 5B for MBS. That is, Fed will increase holdings of treasury securities by only USD 70B and MBS by USD 35B per month. Additionally, Fed will further lower net purchases of treasury securities to USD 60B and MBS to USD 30B per month in December.
Fed expects “similar reductions in the pace of net asset purchases will likely be appropriate each month” depending on the economic outlook.
Also, Fed keeps federal funds rate target unchanged at 0-0.25% as widely expected.
The decisions were unanimous.
