Yellen calls time on QE via ForexLive

•  Expects to end asset purchases at next meeting
• FOMC will continue to have a target range for Fed funds rate rather than a single point
• Pace of tightening to depend on economy (may be faster or slower dependant on economy – bullish comment)
• Funds rate to be key rate communication policy
• Exit plan has some new elements
• IOER to be the main means of moving funds rate
• Overnight reverse repo only to be used as necessary and only to extent necessary
• Ending re-investments will come after first Fed funds hike
• Not anticipating MBS sales right away
• FOMC intends to hold no more assets than necessary

posted via ForexLive