Fed signals time will be right for rate hike ‘soon’
QE set to end in March, with balance sheet to start shrinking after rates rise
The Federal Reserve indicated a rate hike will “soon be appropriate”, as it confirmed its quantitative easing programme would end in March.
The Federal Open Market Committee announced its decision to leave the federal funds rate in the 0–0.25% range today (January 26). It also confirmed its final plans for the end of quantitative easing, and the conditions under which it will start shrinking its balance sheet.
In February, the Fed will buy at least $20 billion in Treasury securities and $10
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