/NEW YORK (Reuters) – The Federal Reserve will likely defer any decision to trim its massive bond buys until at least December, two top Fed officials suggested on Thursday, although a third Fed policymaker made no bones about her view that she opposes any such delay.
A budget battle in Washington that shut government offices for 16 days and brought the United States to the brink of default has injected uncertainty into the economy’s growth trajectory.
, Oct 17 (Reuters) – The Federal Reserve
should not trim its massive bond-buying stimulus until gains in
the U.S. job market are more solid, and may need to keep
interest rates low until the jobless rate drops below 6 percent,
a top Fed official said on Thursday.
The Fed has kept short-term interest rates near zero since
December 2008, and is buying $85 billion in Treasuries and
housing-backed bonds each month to lower long-term borrowing
costs and encourage investment and hiring. Investors had
expected the Fed to start trimming that program last month on
the back of a drop in unemployment, but the Fed decided to wait
for more data before making any policy change.