In the minutes of July 27-28 FOMC meeting, Fed said “all participants” assessed that progress were made towards the both the maximum-employment and price-stability goals. However, “most participants” judged that the standard of “substantial further progress” on employment “had not been met yet”. “Most participant” said the standard was met regarding price-stability, even though a few participants noted that “transitory nature” of this year’s rise in inflation.
“Most participant” said provided that the economy were to “evolve broadly as they anticipated”, it could be “appropriate” to start tapering “this year”. “Various participants” said the economic and financial conditions would likely warrant a reduction in purchase “in coming months”.
But “several others” indicated that tapering would more likely to be become appropriate “early next year”, as they saw prevailing conditions in labor market as not being close to the “substantial further progress” standard, or due to the “uncertainty” about progress on price stability.
