Reuters Economics & Markets Editor Dan Burns on the early FOMC minutes release that showed a few Federal Reserve policymakers expected to taper the pace of asset purchases by midyear.
In a surprise move the Federal Reserve has released the meeting minutes from its march policy meeting earlier than expected today. The meeting minutes typically would have been released about 2 o'clock this afternoon but it turns out that inadvertently the Fed had released the minutes -- about a hundred congressional staffers. And lobby yes some time during the day yesterday. The Fed the Fed officials became aware of that early this morning and decided to release it immediately. There appears to be some investigation under way. Contact with the FC FTC and SEC to determine if there was any suspicious trading activity. Now to the minutes themselves and and take into account here that these that this policy meeting took place before we add. The march payrolls report which came out last Friday it. And it appears that in the discussion several policy members talked about potentially being on a trajectory where the Fed could begin to. Taper it's 85 billion dollar among bond buying program perhaps as earlier this summer. Now you know we have to determine whether that is still a viable option given. The really dismal report we got in March from payrolls only 88000 payroll jobs added during the month. And a big drop in the labor participation rate to the lowest since 1979. 500000 people nearly left the workforce that's a worrying sign for the Fed a number of fed officials including Jeffrey -- this morning. Talking about being concerned about that labor participation right. And something that is undermining the drop in the unemployment rate which did drop to 27 point 6%. But well again on the back of a lower participation rate. So it is questionable right now whether the you know the body of hawks which could be. You know three or four on that on that -- it's still eleven to one voting in favor of maintaining the program. But a body of hawks that does seem to be -- voicing concern about the continuous continuation of the program. Whether it's viable to continue a discussion about tapering as early as this summer.