Fed: No immediate end to QE

<p>The US Federal Reserve has eased fears it is ending its QE programme.</p>

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.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.