August 24, 2014

FOMC expected to taper another $10B

July 30, 2014 - The Federal Open Market Committee is expected to issue a policy statement pointing to an ongoing, measured tapering in the Federal Reserve's asset purchase program following the close of its two-day meeting today.

After its June meeting, the FOMC announced it would continue its established pattern of tapering $10 billion in asset purchases per month, to a pace of $35 billion per month.

NAFCU Senior Economist Curt Long said October is the committee's target date for wrapping up the quantitative easing program.

"It is unlikely that the committee will provide much clarity in terms of when short-term rates will rise," Long said. "To this point, statements have noted only that the timing will depend on the performance of the economy. At this point, the FOMC has some freedom to take a wait-and-see approach, but the scrutiny will intensify after October when the asset purchases are completed."

Also today, the Bureau of Economic Analysis will release data on the Gross Domestic Product. NAFCU will publish a Macro Data Flash with details.