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.