January 28, 2014

FOMC to update policy statement today

Jan. 29, 2014 – The Federal Open Market Committee could announce more tapering in its asset-purchase program today following the close of a two day policy-setting meeting.

The committee decided to reduce the Fed's asset purchases by $10 billion a month in December, to $75 billion a month. NAFCU economists said the panel could announced another $10 billion reduction in today's policy statement this afternoon.

They said a decision whether to taper may depend on how FOMC members view December's employment data and fourth-quarter growth in gross domestic product. Today's statement should also address whether there will be a change in the federal funds rate target, currently set at a range of 0 to 0.25 percent.

Today's FOMC meeting will be the last for Ben Bernanke, whose term as Fed Board chairman expires Jan. 31. Janet Yellen, currently vice chair, is set to succeed him Feb. 1.