The Norman Transcript

August 23, 2013

Fewer bond purchases made


The Norman Transcript

NORMAN — The Federal Reserve has quietly signaled that it thinks the economy is continuing to improve. That’s the message from the minutes of the July 30-31 meeting released this week.

The Fed appears poised to slow down its $85 billion a month in Treasury and mortgage bond purchases. A couple of policymakers want to go slow on the drawdown in hopes of seeing more key indicators.

The purchases keep long-term interest rates near record lows since the Feds are the big borrower in the market. It could happen as early as September.

Foreign markets dipped on the news. More investors turn to emerging markets when interest rates remain low.

With an expected uptick in mortgage rates, investors may stay with U.S. markets for the short-term.