The US Federal Reserve will provide greater details about the normalisation of monetary policy well before interest rates rise, according to the minutes of its July meeting.
Members of the Federal Open Market Committee (FOMC) were generally supportive of proposals for implementing and communicating monetary policy once the committee begins to tighten the stance of policy, reports FastFT.
“Participants agreed that the Committee should provide additional information to the public regarding the details of normalisation well before most participants anticipate the first steps in reducing policy accommodation to become appropriate,” said the FOMC minutes
Charles Plosser, the president of the Philadelphia Fed, dissented at the meeting - marking the first time a policymaker has pushed for tighter monetary policy since Janet Yellen took over as chairwoman of the central bank in February.
A sharp rebound in US economic growth last quarter, combined with a quickening in jobs growth in the past six months, has intensified the debate about when officials will raise interest rates for the first time since the financial crisis.
The central bank remains on track to taper its multi-trillion bond-buying programme by October.
