By CHRISTOPHER S. RUGABER
WASHINGTON (AP) â¿¿ The Federal Reserve appears on track to slow its bond purchases by the end of this year if the economy continues to improve. But it remains divided over the exact timing of the move.
That's the message from the minutes of the Fed's July 30-31 meeting released Wednesday.
A few policymakers said they wanted to assess more economic data before deciding when to scale back the central bank's $85 billion a month in Treasury and mortgage bond purchases. These policymakers "emphasized the importance of being patient," the minutes said.
Others said it "might soon be time" to slow the purchases, which have helped keep long-term borrowing rates near record lows.
"There's more debating than deciding," said Michael Hanson, senior economist at Bank of America Merrill Lynch. "We didn't get a strong indication that the committee broadly is prepared to taper in September."
Nor did the minutes give any indication of how fast the Fed would scale back its purchases once it begins â¿¿ or whether it would cut back equally on Treasury and mortgage bond buying.
Since the July policy meeting, a few Fed officials have suggested that the central bank could slow the bond buying as soon as September. By then, updated reports on U.S. employment and economic growth will have been issued.
The Fed is considered most likely to slow its bond buying after its September or December policy meeting because after each one, Chairman Ben Bernanke will hold a news conference and could explain such a major step.
The Fed holds eight policy meetings a year; four include news conferences by the chairman. Besides September and December, the Fed will also meet in October before the year ends.
The minutes suggested that future Fed statements may provide no advance warning of any policy shift before it happens. Several members suggested that providing advance notice might confuse stock and bond investors