Fed eases back on tapering talk despite improving GDP data

The Federal Reserve has given little suggestion of a forthcoming slowdown in its quantitative easing programme despite economic data continuing to improve.

Minutes released last night from the Federal Reserve's July meeting said US economic growth is "modest" and could be curtailed later in the year if the inflation rate remains stubbornly below 2%. The comments come after US GDP growth for the second quarter, released yesterday, came in at 1.7%, well ahead of the 1% consensus forecast. "To support continued progress toward maximum employment and price stability, the committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase programme ...