The Federal Reserve Just Unveiled Two Things Every Investor Needs to Know
Falling inflation isn't derailing the Federal Reserve's plans to normalize policy.
The minutes of the Fed's June meeting showed Fed officials expect inflation to rebound to its 2% target over the long-term and that falling inflation in recent months is attributed to lower wireless plan costs. The Fed's preferred inflation measure rose only 1.4% year over year.
As for its $4.5 trillion balance sheet, the central bank is set to allow $10 billion worth of monthly securities to mature and that process could commence as soon as this year.
"Participants noted that, with the process of normalization of the level of the federal funds rate continuing, it would likely become appropriate this year for the Committee to announce and implement a specific timetable for its program of reducing reinvestment of the Federal Reserve's securities holdings," the minutes said.
More From TheStreet:
