Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fed points to Q1 2015 rate rise with QE end date

Fed points to Q1 2015 rate rise with QE end date

The Fed will shut down its five-year programme of asset purchases in October the Federal open Market Committee has said, despite ongoing misgivings about the strength of the US economy.

The central bank is currently buying $35 billion in assets every month, having steadily run down its purchases from $80 billion a month from the beginning of this year.

It had not previously been clear whether the Fed would bring this to an end in October or December.

Excluding an unforeseeable external shock, that would put the expected timeline for the first interest rate rise at the end of the first quarter 2015.

The notes also revealed that ‘many’ Fed officials had supported continuing to re-invest income arising from its portfolio of treasuries and other fixed income securities until rates began to rise.

‘If the economy progresses about as the Committee expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting,’ said the minutes.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Trump protests: Psigma's Becket reports from the US

Trump protests: Psigma's Becket reports from the US

Psigma's chief investment officer Tom Becket encounters a little more than he bargained for in a recent trip to the US.

Play Neil Woodford uncut: the full video

Neil Woodford uncut: the full video

We bring you the full video from Woodford's recent visit to Citywire HQ.

Play What the Next Generation is bringing to the wealth world

What the Next Generation is bringing to the wealth world

To mark Citywire's inaugural Next Generation Forum we ask tomorrow's talent what influence they think they can have on the wealth industry.

Read More
Your Business: Cover Star Club

Profile: Brewin's Newcastle boss on the increasingly competitive NE

Profile: Brewin's Newcastle boss on the increasingly competitive NE

William Baker Baker, Brewin Dolphin’s Newcastle office head, is a fixture in the firm, having been with them for 30 years.

Wealth Manager on Twitter