The US Federal Reserve for October can complete the quantitative softening program

The leadership of the US Federal Reserve is going to complete the quantitative mitigation program in October if by then the US economy continues to grow. This follows from the minutes of the meeting of the U.S. Fed open markets, which was held on June 17-18.

The document quoted by Kommersant says: “If we continue to receive information confirming that the situation on the labor market is improving, and inflation will be within the expected limits, it will be acceptable to complete the program to purchase it by reducing it by $ 15 billion ... This last reduction in the program can occur during the meeting in October.”

The gradual folding of the third round of the program for the redemption of bonds from the Fed FRS market began in December last year, reducing it by about $ 10 billion every month. In January, the volume of the quantitative softening program was 85 billion, now the Fed is redeeming papers for $ 35 billion per month.

The curling of the program was expected - the question was only when this would happen. If in a crisis the unemployment rate in the United States reached 10%, now it has been reduced to 6.1%. US GDP also shows signs of growth. Statistics gives the Fed grounds for moderate optimism - many market participants expect that after the completion of the FRS assets redemption program, at the beginning of next year, the basic accounting rates can be increased.

Monetary stimulation has begun the Fedi in the midst of the financial crisis - in the fall of 2008. Then the volume of government bonds in the Fed’s portfolio amounted to about $ 800 billion. During the three rounds of the quantitative softening program (QE) by redeeming government bonds from investors, the American Central Bank brought the volume of bonds in its portfolio to $ 4.4 trillion.