Federal Reserve officials agreed at June’s policy meeting to end their bond-buying program in October, putting an explicit end date on the experiment for the first time and closing a controversial chapter in central-banking annals with results still the subject of immense debate. The central bank has reduced bond buying (also known as quantitative easing, credit easing) by $10 billion increments every month this year. Bond buying is currently sitting at $35 billion a month from it’s high of $85 billion. Investors and the every day individual are seeking security in hard metals such as Gold IRA and Gold Investment
The outlined plan to decrease bond buying was in the Fed’s minutes from their June meeting, which was just released. The plan is to continue decrease bond buying in increments of $10 billion per month and the largest increase of $15 billion would come in October. This means that there will no longer be any quantitative easing for the month of November. The end of a costly plan over $1 trillion that could set back the United States economy a good amount of time. Most Fed officials at June’s policy meeting didn’t see rate increases until 2015, according to projections made before the Labor Department reported that the jobless rate fell to 6.1% in June, down 1.4 percentage points from a year ago. The price of Gold has been holding strong and more and more investors are seeking safety in the metal. If things start to spiral going gold would of been the smart investment to make beforehand. Gold has long been the go-to investment for safety and security in uncertain economic times.
Fed officials hadn’t expected unemployment to fall to near 6.1% until the end of this year, according to their June projections. This advancement suggests that monetary policy can safely start the process of normalization a touch earlier than previously expected. The Fed has said all along that its policy plans would evolve as it saw the economic outlook shifting. Ms. Yellen sought to emphasize that point at a press conference following the Fed’s June meeting.
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