Economic Update US Federal Reserve

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Late last week the US Federal Reserve announced a further $US10bn tapering in the QE3 bond purchase program, taking monthly bond purchases down to $US65bn.

After announcing a reduction in the monthly bond purchase program from $US85bn/mth to $US75bn/mth late last year, the Fed has announced that from February there will be a further $US10bn/mth reduction in bond purchases, down to $US65bn/mth. The Fed will now be buying $US35bn in Treasury bonds per month and $US30bn/mth in mortgage backed securities.

 

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