Highlighting the FOMC’s October meeting was talk about quantitative easing, which comes as no surprise.
What may come as a surprise is that policy makers were pondering a date in which to begin tapering from its current $85 billion monthly rate, meaning tapering could happen sooner rather than later.
Nine of 10 Fed members voted to continue the current program as-is during the Oct. 29-30 meeting, but easing bond purchases could happen in the “coming months.”
Prior to and following the meeting minutes being released, precious metals were weaker across the board. Gold has dipped $33.14 and silver fell 54 cents to $19.87 as of this writing. It’s the first time silver has slipped below $20 since August. Much of that can be attributed to a stronger dollar and a strengthening economy that is being reported.
Because of the recent movement in the markets, James Bullard, St. Louis Federal Reserve Bank president, said that scaling back on bond purchases as soon as December is “definitely on the table.”
A strong labor market in November and continuing improvement in the economy would be the determinant. October created 204,000 jobs, and that trend must continue to rise if tapering in December is a consideration.
To review minutes from October or months prior, visit the Federal Reserve.
What are your thoughts?
Do you think tapering will begin soon?
Does the current report alter your bullion purchasing plans?
Join the conversation. Leave a comment below or visit our Facebook and Twitter pages today.
Leave a Reply