Federal Reserve announces autopilot strategy: How long can it stick to? – Not a discussion

Federal Reserve Autopilot Statement

This is the key paragraph from the Federal Open Market Committee (FOMC) statement released by the Federal Reserve at the conclusion of the November 2-3 meeting.

In light of the significant progress the economy has made toward the committee’s goals since last December, the committee decided to begin reducing the monthly pace of net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. Beginning later this month, the committee will increase its holdings of Treasury securities by at least $70 billion per month. and agency mortgage-backed securities of at least $35 billion per month. Beginning in December, the committee will increase its holdings of Treasury securities by at least $60 billion per month and agency mortgage-backed securities of at least $30 billion per month. The Committee considers that similar reductions in the frequency of net asset purchases are likely to be appropriate each monthBut it is prepared to adjust the pace of buying if the changes in the economic outlook warrant it.