The US Federal Reserve System has not decided with the time of finishing the quantitative easing program (QE). Such a conclusion can be made after reviewing the published minutes of meetings of the Federal Open Market Committee.
In a statement after the meeting said that the U.S. economy still needs a support. Almost all of the 12 members of the committee agreed that the time for change stimulating policy in the national economy has not yet come.
Just a few committee members found at a meeting that it will soon come a time for some slowing the pace of buying bonds, while the other leaders of the American Central Bank called for patience on the issue of quantitative easing program's ending.
Fed officials noted that the unemployment rate, amounting to 7.4% in July, went down significantly since the time of the decision to start a new program of incentives in last year’s September.
Recall, the U.S. Central Bank buys bonds every month to $ 85 billion to reduce the cost of long-term financing with a goal of stimulating the national economy.
Meanwhile, The United States Federal Reserve has set a new record, but it’s not one exactly worth celebrating. For the first time ever, the Fed is carrying more than $2 trillion in US debt.
According to the Fed’s latest weekly account, the central bank currently is holding roughly $2,001,093,000,000 in US Treasury securities.
That statistic, first reported by CNS News, was published by the Fed on August 14. One week earlier, the bank reported that it amount of federal debt it carried totaled only $1,993,375,000,000.
By comparison, the amount of federal debt held by the bank since the start of 2009 and the administration of US President Barack Obama has more than quadrupled. On Dec. 31, 2008 that statistic was less consisted of less than a half-trillion in Treasury securities, but efforts undertaken by the Fed to revive the economy have instead left the bank to bear record amounts of national debt.
China, the second place holder with regards to US debt, was owed $1.2758 trillion by the US as of late June. CNS News reported that only 16.7 percent of the government’s debt is being held by the Fed, and that an additional $5.6 trillion — including the amount held in China — is owned by foreign entities.
