More clues on just when and how the U.S. Federal Reserve may begin to cut its pandemic-induced bond-buying spree are likely to emerge on Wednesday when the central bank publishes minutes of last month’s pivotal meeting.
Fed officials opened debate on dialing down their $120 billion a month of bond purchases at the June 15-16 meeting and since then most Fed policymakers have offered broadly bullish views of an economy that by many measures is sprinting out of a recession triggered by the global COVID-19 pandemic.
A number have signaled they see the recent run of job gains and above-target inflation as representing “substantial further progress” toward the Fed’s maximum employment and price stability goals, a benchmark that would allow them to start tapering their asset purchases.
Data since their meeting could support that conclusion.
The United States added 850,000 jobs last month, the Labor Department’s closely watched employment report showed on Friday, a better-than-expected acceleration in hiring after two straight months of weaker gains.