April 29, 2014

FOMC expected to stay the course

April 30, 2014 – The Federal Open Market Committee will conclude its two-day meeting on monetary policy today and is expected to stay on its current course of tapering in its monthly asset purchase program.

NAFCU Research Assistant Doug Christman said the FOMC is likely to reduce monthly asset purchases by another $10 billion going forward, as it has done in previous meetings. Current indications also point to the Fed leaving the federal funds rate at the 0 to 0.25 percent target range for now, he added. The committee will issue a statement at 2 p.m. Eastern.

After its last meeting in March, the FOMC announced the Fed would slow its purchase of additional agency mortgage-backed securities to a pace of $25 billion a month and longer-term Treasury securities to a pace of $30 billion per month, down from $30 billion and $35 billion, respectively.