Fed supports tapering in Q2

At their last meeting in July, members of the U.S. Federal Reserve showed support for easing U.S. central bank asset purchases in the second half of this year, reports ft.com.

Additionally, the committee estimated “inflation would move back toward its 2% objective over the medium term,” and if it remained below that it “could pose risks to economic performance.”

Read: Fed went too far, say analysts

In reviewing the year so far, officials agreed economic conditions were mixed, with the economy growing at a modest pace.

They noted more consumers were spending and the housing market was strengthening. But some members suggested “fiscal policy had restrained spending in the first half of the year more than they previously thought.” They said part of the reason could be that growth in economic activity was “somewhat below their earlier expectations.”

Read: When will the Fed start tapering?

Also, subpar economic activity abroad was a negative factor for export growth. And even though labour market conditions improved, the unemployment rate remained high at 7.6% in June.

Read the minutes of the Federal Open Market Committee.

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