The minutes of the FOMC meeting held on September 21-22, where the clearest messages were given on reducing asset purchases, which were raised along with rising inflation rates, will be published tomorrow at 20.00 (GMT+2).

At the last meeting, the Federal Reserve, which kept the policy interest rate between 0 - 0.25 percent in line with market expectations, stated that it would continue its asset purchases at the pace of at least 120 billion. The published minutes of the decision reported that if the progress in the economy continues, the slowdown in the pace of asset purchases may be discussed.

"In case the economy makes significant progress" expression were changed as "If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted" within the FOMC statement.

One of the most important developments of the September meeting was the economic projections. Members who raised their inflation forecast for 2021 and 2022 also changed the time for interest rate rise to an earlier date. The number of members who predicted an interest rate hike in 2022 had been 7 at the August meeting; however,  this number increased to 9 at the September meeting.

Holding a press conference after the meeting, Fed Chair Powell said that as a result of an assessment of all factors, asset purchases will be clearly reduced. Pointing to the November meeting, Powell delivered that 'gradual' asset purchase reduction could end in the middle of 2022. "We also discussed the appropriate pace of tapering asset purchases once economic conditions satisfy the criterion laid out in the Committee’s guidance. While no decisions were made, participants generally view that, so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate. Even after our balance sheet stops expanding, our elevated holdings of longer-term securities will continue to support accommodative financial conditions," the Chair also noted.