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FOMC minutes show members open to tapering QE

FXstreet.com (Córdoba) - The minutes from the April 30 and May 1 FOMC meeting showed that "a number" of officials expressed willingness to taper the bond buying program as early as the June meeting "if the economic information received by that time showed evidence of sufficiently strong and sustained growth".

However, according to the minutes, views differed about what evidence would be necessary and the likelihood of that outcome. One Fed official wanted to stop the bond purchases immediately, while another wanted to increase the size of the program. Despite the discrepancies, most members emphasized importance of being prepared to adjust purchases either up or down.

The minutes also revealed the Fed started a review of their exit strategy principles last released to the public in 2011. The broad principles appeared generally still valid, but the bank will probably need greater flexibility regarding the details of implementing policy normalization.

AUD/USD extends decline to 0.9660

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US Dollar Index around 84.50

The greenback, in terms of the US Dollar Index, is trading firmly higher across the board, propped up by a hawkish testimony of Fed’s Bernanke...
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