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Weak jobs growth unlikely to derail QE cuts: Fed officials

Published on Jan 11, 2014 6:24 AM
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Job seekers sit at computers looking for jobs available at a Workforce One Employment Solutions center on Jan 7, 2014 in North Miami, Florida. In Washington, DC. Another cut to bond purchases appears in the offing this month despite data that showed United States (US) jobs growth slowed sharply in December, two top Federal Reserve officials said on Friday. -- FILE PHOTO: AFP

INDIANAPOLIS/RALEIGH (REUTERS) - Another cut to bond purchases appears in the offing this month despite data that showed United States (US) jobs growth slowed sharply in December, two top Federal Reserve officials said on Friday.

The officials, from opposite sides of the US central bank's spectrum of policymakers, reinforced public perceptions that it would take a more significant slowdown in the labour market to convince the Fed to stop withdrawing stimulus.

In what amounted to the beginning of the end of the largest monetary policy experiment ever, the Fed last month decided to cut its bond-buying by US$10 billion (S$12.7 billion) to US$75 billion each month, citing progress in the labour market.

Earlier on Friday, a report showed US joblessness fell to 6.7 per cent from 7 per cent in November. But hiring was far lower than expected, leaving many second-guessing just how strong is the labor market recovery that took hold in the autumn.

 
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