Minutes from the Federal Reserve’s
Open Market Committee meeting in October indicate that there was little change
in the economic outlook since the September meeting. Despite the “moderate”
growth of the economy, many of the committee members indicated that the Fed may
begin slowing the bond-buying program in coming months.
Currently, the Fed is purchasing $85
billion per month in bonds to help stimulate the economy and improve the job
market. If the Fed does begin tapering the bond buying program without the desired
unemployment rate, it will be a departure from previous guidance. Many economists
have revised their prediction on the start of the tapering over the last year.
Initially, many thought the taper would begin in September of this year. When
the government shut down, many forecasts looked for it to begin in March 2014.
After the October jobs report, some economists have switched their prediction
to December.
In trading Wednesday afternoon,
stocks fell slightly as investors weighed the possibility of the taper
beginning sooner rather than later.