Change unlikely in balance sheet normalisation plan

Household spending has been supported by ongoing strength in the job market, US Federal Reserve chair Janet Yellen said

Good afternoon. At our meeting that concluded earlier today, my colleagues and I on the Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 1 to 1.25 per cent. This accommodative policy should support some further strengthening in the job market and return to two percent inflation consistent with our statutory objectives.

We also decided that in October, we will begin the balance sheet normalisation programme that we outlined in June. This programme will reduce our securities holdings in a gradual and predictable manner. As we expected, and smoothing through some variation from