Fed signals shift in balance sheet policy 'this year'

Bond strategists expected the minutes from the Federal Reserve's March meeting, released Wednesday at 2 p.m. ET, to include some discussion of balance sheet reduction.

The Fed, chaired by Janet Yellen, bought Treasury and mortgage-backed bonds on a hitherto unprecedented scale in the wake of the financial crisis to help to keep interest rates low and to encourage job creation and economic growth.

The minutes said that Fed officials agreed that if the economy continued to perform as expected that "a change in the committee's reinvestment policy would likely be appropriate later this year".

Trump has promised to return the USA to sustained 4% annual GDP growth (which he recently downgraded to a 3% target), slash taxes significantly, invest $1 trillion in infrastructure, expand job opportunities, and more.

On inflation, the minutes showed that some Fed officials anxious that if unemployment, now at a low of 4.7 percent, fell even further, it could pose a "significant upside risk" of higher inflation. But there was less agreement over the issues of inflation and Trump's economic plans.

"Participants continued to underscore the considerable uncertainty about the timing and nature of potential changes to fiscal policy", the minutes said.

Suspended free agent safety TJ McDonald signs with Dolphins
Jones pleaded guilty to a reckless driving charge involving drugs in January. Via Twitter, the Dolphins have officially welcomed McDonald to Miami.

With improving economic conditions, the Fed increased interest rates by 25 basis points on March 15. Members of the Federal Open Market Committee also said meaningful fiscal stimulus from the Trump administration would not be felt until 2018.

The release of the minutes came a day after the sudden resignation of FOMC member Jeffrey Lacker - the president of the Richmond Federal Reserve Bank - who admitted to a role in the leak of confidential minutes meetings in 2012.

The minutes showed that the Fed is increasingly encouraged by progress in the global economy, including stronger growth in China and Europe. Many analysts believe the Fed will hold rates steady at the May meeting.

While some Fed officials argued that the inflation target might be achieved by the end of this year, other Fed officials argued that since inflation had run below 2 percent for so long, it would do no harm to allow prices to rise above 2 percent for a time.

The minutes make it clear that shrinking the $4.5 trillion balance sheet will be a priority in the coming years, but probably would start very gradually and not until late this year at the soonest.

The development may raise the temperature for the Fed, observers said, with hostile lawmakers in Washington threatening to audit the central bank or take measures some critics say could curtail its independence.

Related News:

  • Windows XP Loses More and More Ground to Windows 7 and 10

    Windows XP Loses More and More Ground to Windows 7 and 10

    Those interested in getting the update as soon as possible can download it directly from Microsoft's website once it is released. To do this, go to setting app on windows10 updates and security Windows Insider program get started .
    Reverse April Fool's Day Prank - 'Rick and Morty' Season 3 Premiered Today

    Reverse April Fool's Day Prank - 'Rick and Morty' Season 3 Premiered Today

    Could Rick Still Be in Prison? But the sauce is now "no longer available", at least not in this reality. Episode 5 of our brand new podcast The Capital B has arrived! You can see all of the clips below.
    'World's Strongest Coffee' Exceeds Daily Caffeine Limits In Just One Cup

    'World's Strongest Coffee' Exceeds Daily Caffeine Limits In Just One Cup

    Cape Town, South Africa-based Black Insomnia proudly acknowledges its product is in no way part of a healthy, balanced lifestyle. A screenshot of the coffee's "Dangerous" rating on the Caffeine Informer website features prominently on its homepage.
  • Hardy Boyz stun fans at WrestleMania 33

    Hardy Boyz stun fans at WrestleMania 33

    Cena got down on one knee after he and Bella defeated The Miz and Maryse via double pin, according to ESPN . As noted in last night's WrestleMania report, it is expected that last night was Taker's final match.

    US wants China to take action to stop North Korea nuke tests

    Previously, the United Nations imposed sanctions on North Korea for three nuclear tests it carried out in 2006, 2009 and 2013. Defense against missiles is not 100 percent effective and only one needs to get through for events to spiral out of control.
    Pulis urges West Brom's youngsters to step up ahead of hectic week

    Pulis urges West Brom's youngsters to step up ahead of hectic week

    Another fan said that "with Mourinho moulding the team, maybe in the next three years.if he can stay that long!" West Brom have scored more goals from defenders (12) than any other Premier League team this season.
  • Hot day in Delhi

    Hot day in Delhi

    The weather conditions will remain the same and temperatures will continue to settle way above the 40-degree mark. The maximum temperature in Amritsar was 34.8 degrees Celsius, five notches above normal.
    Recall issued for some EpiPen products

    Recall issued for some EpiPen products

    The problems could be potentially life-threatening, although Mylan described the incidence of the defects as 'extremely rare'. Mylan responded by initiating sales of a so-called authorized generic for $300, but now faces increased competition, as well.
    Alex Rodriguez gushes about Jennifer Lopez: 'She's an unbelievable  girl'

    Alex Rodriguez gushes about Jennifer Lopez: 'She's an unbelievable girl'

    However, the collaboration didn't make it on Drizzy's More Life , fueling speculations that their relationship ended abruptly. The two seemed to be having a great time spending time together - going on dinner dates and even enjoying joint workouts.
  • Wozniacki reaches her 1st Miami Open final, tops Pliskova

    Wozniacki reaches her 1st Miami Open final, tops Pliskova

    Pleased with his honesty, Kyrgios was then overheard saying "I want to see this on social media" as Zverev gave him a thumbs up. But he earned another and made no mistake, attacking Zverev's second serve for a 5-4 lead before closing out the first set.

    Body of assassinated Kim Jong-nam is returned to North Korea

    While the two suspects were arrested by the Malaysian authorities, suspicions of other North Korean agents' involvement remained. Airport CCTV footage shows them approaching Kim Jong-nam and apparently smearing his face with a piece of cloth.
    Back to burgers: Carl's Jr. ditches bikini-clad ads

    Back to burgers: Carl's Jr. ditches bikini-clad ads

    Will Carl's Jr . and Hardee's have better luck? "It was time to evolve", executive creative director Jason Norcross explained. The company still has its eye on its prized "hungry young guy" demographic, but upscale changes are coming.


Most liked

Who is Susan Rice, the Obama ally behind the 'unmasking' controversy?
She gave, as a hypothetical answer, "if two foreigners were having a conversation" about a possible bombing with an American. The Daily Caller News Foundation Investigative Group published a report Monday quoting former U.S.

Removing Wenger won't end problems for Arsenal: Ex-defender Clichy
Wenger admitted he'd seen the signs on his way into training but mocked the supporters for wasting their time in such a futile exercise.

Kim Kardashian Changes Her Baby Plans, Looks into Surrogate Options
The urgency to have more kids comes in the wake of the life-changing armed robbery that shook the mogul to her core last October. In an episode of KUWTK that aired in November 2016, Kardashain talked to a fertility doctor about surrogacy .

SpaceX conducts historic launch, landing with "used" rocket
SpaceX is developing a viable commercial launch ability, but Musk has not been shy about his ultimate goal of colonizing Mars. He added that his team were also working on recovering the second "booster" stage, which now burns up in the atmosphere.

MCD Election 2017: Congress doesn't see AAP as factor
Among the names in the second list was Mukesh Goel, now the Leader of the Opposition in the North Delhi Municipal Corporation. His threat to quit the party came a day after the Congress released its second list of candidates for the civic polls.

Mumbai University fails to make it to top 100 of ministry list
In Jadavpur University rival student groups clashed over the screening of a political film+, also past year . He said grants and funds would be more for those institutions faring better in rankings under NIRF .

Senate GOP needs Pence to break tie on family planning funds
President Trump is expected to sign the Title X measure, though his administration is yet to release a statement of intent on it. The Title X grant of the Public Health Service Act is the only federal program focused exclusively on providing family planning.

Pence cast tie breaking vote on Planned Parenthood funding
Republicans Susan Collins of ME and Lisa Murkowski of Alaska voted with the Democrats against the bill, according to Politico . Women's marches have been held across the country to protest cuts to reproductive health care.

What to Expect at the ACM Awards 2017
Academy of Country Music Awards host Luke Bryan says tonight's show will unite Democrats and Republicans. Luke Bryan is a manly man who loves huntin', fishin' and everything outside.

American prove their worth in shutout of Canada in IIHF World Championships
According to Stefanick, it was tough getting pumped up about the Women's Worlds because of all the uncertainty. Canada and the USA have met in every world championship final dating back to the first one in Ottawa in 1990.

All of 140 characters of Twitter are now available for reply
Twitter users-old and new are particularly frustrated at some of the unclear rules surrounding how they compose and send tweets. September of past year , it made an exception for media attachments (images, GIFs, videos, polls, and more ) and quoted tweets.

Selena Gomez previews her 'Only You' cover from 13 Reasons Why
Selena adds, "So I think the message and people , no matter what age you are, can relate to the story". Gomez, who executive produced the show, stunned in an orange Oscar de la Renta strapless minidress.

US, UK banning electronic devices on some flights
USA officials would not say how long the ban will continue, saying only that it will be reevaluated on a regular basis. The British ban includes smartphones, if they are larger than 16cm long, 9.3cm wide and 1.5cm deep, the BBC reports.

Kim Kardashian West has surgery on her uterus
Kim Kardashian is going under the knife, and no, it's not for a nip and a tuck. The all new ep of KUWTK airs Sunday, 9 p.m.

North Carolina's "bathroom bill" repeal: who's satisfied?
It has threatened to keep siting its sporting events in other states as long as House Bill 2 remains on the books. California and NY had banned nonessential travel by state employees to North Carolina after HB2 became law.