Has the Fed Opened the Door to Tapering?

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Aug. 22 (Bloomberg) -- Bloomberg's Jonathan Ferro recaps minutes form the last FOMC meeting and the signals given about the start of tapering and the lingering concerns held by members of the Federal Reserve. He speaks on Bloomberg Television's "On The Move."

The latest for ahold, gaining 4.5%. jonathan ferro joins us for more on the fed's latest minutes.

What did we find out?

The standout line is all participants were broadly comfortable about the contingent outlook for asset purchases.

What does that mean?

If economic conditions improve in line with expectations, they expect to rein in stimulus this year and end by the end of 2014. minutes do not commit to what later this year means.

Perhaps intentionally.

These guys do not want to tie their hands.

They do not want to be boxed into a corner.

There was also some concern shown in the minutes of that growth in the labor market -- about growth in the labor market.

They indicated they were less confident about a near-term of economic growth.

As for the labor market, the unemployment rate is described as elevated.

In july, unemployment was 7.6%. it is 7.4%. we are not at the seven percent level where they intend to end asset purchases.

There was a lot of talk about if they would refine thresholds.

What is the story?

The communication mission of ben bernanke over the last three months was to separate intentions for qe and what they might do for interest rates.

You take the unemployment rate of 6.5% -- what they lower it to 6%? there is general support for maintaining thresholds, but it was discussed at the meeting.

Given the fall in unemployment recently, there may be another debate on this issue in september.

All the focus, it will be on the september meeting.

What is the consensus?

It continues to put a lot more emphasis on the data.

This text has been automatically generated. It may not be 100% accurate.

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