Fed hits the kill switch By Clif Droke "On Wednesday the Fed released the minutes from its July 30-31 policy meeting. Minutes from the meeting showed that most members of the FOMC agreed that a reduction of the stimulus was not yet appropriate. Only a few thought it was time to “slow somewhat” the pace of the stimulus policy. Investors continue to fear that the Fed will start to slow its $85 billion monthly asset purchases, with most predicting September as the beginning of the end of the aggressive quantitative easing (QE) program. This fear was manifested beginning in June as foreign investors sold U.S. Treasuries to the tune of $489 billion in that month alone. The annualized rate of Treasury notes and bonds sold over the last three months was $271 billion. In more recent days, Asian currencies have declined as investors fear tighter Fed policy will starve emerging markets of investment funds."
Posted on: Fri, 23 Aug 2013 03:21:43 +0000
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