The Federal Open Market Committee concluded their two day meeting on Wednesday and voted unanimously to taper the level of monthly asset purchases by $10bn from the 1st February. At Ben Bernanke’s final meeting, the reduction of asset purchases was split equally between Treasury’s and mortgage-backed securities (MBS).
The pace is now expected to continue with a monthly reduction of $10bn as the Fed attempts to wean the US economy from the ultra loose fiscal policy. Some analysts had thought that the significant volatility in emerging market currencies (EMFX) might leave a question in the voting member’s heads.
From next month the FOMC will be led by current Fed vice chair Janet Yellen.