American policymakers have said the economy is “far from” where it needs to be before they start paring back their vast support measures.
Minutes of the US Federal Reserve’s rate-setting committee, published last night, acknowledged an “acceleration in economic activity” but cautioned that there remains a long way to go.
The open market committee held its main interest rate close to zero and its asset purchases steady during a meeting last month. However, the minutes noted how some members suggested that discussions over the tapering of its $120 billion monthly bond purchasing scheme “might be appropriate” in upcoming meetings, providing the economy continues its rapid recovery.
Mounting concern around the prospect of inflation has rippled through markets in recent weeks, denting stocks and rattling bond