Latest News:  


Fed officials divided on when to taper off QE3


10:28, July 11, 2013

WASHINGTON, July 10 (Xinhua) -- Top officials of the U.S. Federal Reserve remained divided on when to taper off the massive bond purchase program, revealed the minutes of the Fed's latest interest-setting group meeting released Wednesday.

"Several members judged that a reduction in asset purchases would likely soon be warranted, in light of the cumulative decline in unemployment since the September meeting and ongoing increases in private payrolls," according to the minutes of a Federal Open Market Committee (FOMC) meeting held on June 18 and 19.

However, some officials believed they would need to see more evidence that the projected acceleration in economic activity would occur, before reducing the pace of asset purchases, noted the minutes.

The central bank last month painted a brighter picture of the U.S. economy on the back of a housing recovery. After the FOMC meeting, Fed Chairman Ben Bernanke announced that the central bank would start scaling back the QE3 later this year if the economy improves as expected and may end it by mid-2014 altogether.

Since the onset of the financial crisis, the Fed has kept its short-term interest rates at historically low levels and completed two rounds of quantitative easing programs, known as QE1 and QE2 respectively. It is now purchasing longer-term government debt and mortgage-backed securities at a pace of 85 billion dollars per month, dubbed as QE3.

"It has been about six years since the first signs of the financial crisis appeared in the United States, and we are still working to achieve a full recovery from its effects," Bernanke said on Wednesday at a conference sponsored by the National Bureau of Economic Research in Cambridge, Massachusetts.

Highly accommodative monetary policy for the foreseeable future is what's needed for the U.S. economy, Bernanke said.

We Recommend:

How did Chinese solar industry go bankrupt?

Born to lead: 2nd gen of Chinese tycoons

Chinese graduates’ unconventional jobs

China's largest railway terminal officially opens

Dazzling gems shine at Beijing jewelry show

Boeing 787 Dreamliner to serve Beijing-Haikou route

New high-speed rail linking Nanjing, Ningbo opens

Jiaxing-Shaoxing Sea Bridge in E China

Chinese investors' happiness and sadness

Email|Print|Comments(Editor:ChenLidan、Ye Xin)

Leave your comment0 comments

  1. Name


Selections for you

  1. Chinese, Russian naval forces in drill

  2. Chinese,Russian naval forces leave for drill

  3. Iranian female ninjas show combat skills

  4. Children's hospital full of patients

  5. Pushy parents turn matchmaking events

  6. China's weekly story

  7. Egrets enjoy life in forest

  8. Cute cats vs stylish women

  9. China Pan-Asia Stone Expo kicks off

  10. China's 50 best CEOs named

Most Popular


  1. Inflow of 'hot money' tackled, expert says
  2. Caution urged in seeking experts from abroad
  3. China didn't cause German solar firms' bankruptcy
  4. China, U.S. discuss cyber security
  5. Why are we obsessed with selfies?
  6. Israel keen on luring Chinese tourists
  7. 'Bernanke shock' necessary
  8. Safety first for baby formula
  9. Defense paper shows Tokyo's hysteria
  10. Shanghai investor sentiment drops

What’s happening in China

Rainstorms flood more than 10,000 cars in underground garages in Wuhan

  1. One-tenth of condoms failed tests in Guangdong
  2. Free bus rides in rush hours to end for seniors
  3. 2 dead, 7 injured in central China blast
  4. China confirms 132 H7N9 cases, 43 deaths
  5. China completes overhaul of dairy standards