PGZ - Fed likely to debate timing amount of tapering MBS purchases at meeting

Alex Wong/Getty Images News Like the Federal Open Market Committee's June meeting, the Federal Reserve's Wednesday meeting will focus more on the actions they'll take down the road. For one thing, Chairman Jerome Powell has repeatedly said the Fed will communicate its intentions both on tapering asset purchases and and interest rate adjustment well in advance. Tapering will come first, he has said. So that is likely to drive a good deal of discussion, as raising interest rates won't be on the agenda until after tapering starts. The question is when the central bank will start slowing asset purchases and by how much. Another issue is whether the Fed will start tapering purchases of mortgage-backed securities first, as Dallas Fed President Robert Kaplan has suggested, or whether they'll taper MBS purchases at a faster pace than Treasury bond purchases, as Boston Fed President Eric Rosengren has discussed. St. Louis Fed

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Fed likely to debate timing, amount of tapering MBS purchases at meeting