Fed No immediate end to QE

The Federal Reserve in the US has moved to reassure investors that it is not going to bring its quantitative easing (QE) programme to an end in the immediate future.

Comments made by the chairman of the body Ben Bernanke spooked markets when he indicated the Fed could close the scheme down next year.

However, the minutes from the latest meeting of the Fed shows policymakers are going to wait for more positive economic news before making any changes to the QE programme.

"Several members judged that a reduction in asset purchases would likely soon be warranted," the minutes released on Wednesday (July 10th) said.

But some analysts stated that the result of the statement could confuse investors and global markets even more.

Kim Rupert, a managing director at Action Economics, added: "Most (analysts) had expected September might be a good starting point. This throws a lot more doubt on that timeframe."

Global markets dropped on the back of Mr Bernanke's comments last month and the Nikkei index even fell to below the 13,000 mark after a 0.7 per cent drop in one day.

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