US jobs growth triggered Fed QE taper

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The Federal Reserve saw jobs growth in the US as the trigger to begin tapering QE, and has raised its economic growth forecast, the minutes of the last Federal Open Market Committee (FOMC) meeting reveal.

The minutes of the 17-18 December meeting, released yesterday, show the majority of Committee members voted to reduce the Fed's asset purchase programme by $10bn a month. This reflected a stronger economic outlook, and the view growth would strengthen and the unemployment rate would gradually decline. "Members judged that the risks to the outlook for the economy and the labour market had become more nearly balanced," the minutes stated. Recent jobs market data from the US has surprised on the upside: total non-farm payroll employment rose in October and November at a faster monthly...

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