Investors were having a difficult time swallowing the information from the Federal Reserve’s latest meeting minutes, out yesterday afternoon. Each of the major benchmarks suffered losses at closing yesterday, with the Dow Jones Industrial Average and the S&P 500 tied at a 1.1% loss. The Nasdaq fell 0.9%.
So… what did the meeting minutes reveal, exactly?
Apparently, the Federal Reserve could begin reigning in its massive bond-buying program before year’s end.
“Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the document read.
Many experts said they believe the central bank will announce its tapering plan as early as September.
Apparently, bankers are happy with reaching its inflation goal, but believe there is still more work to do on a different front before they could even think about raising rates, which comes after tapering goes into effect.