10 Apr 2014

Fed chair's moves backed by colleagues

12:43 pm on 10 April 2014

US Federal Reserve chair Janet Yellen has the backing of her colleagues to replace the bank's economic goal posts.

Dr Janet Yellen.

Dr Janet Yellen. Photo: Getty Images / AFP

In the past, the Fed has said its goal was to reduce unemployment to 6.5 percent and get inflation down to 2.5 percent before raising interest rates.

Minutes from the Fed's latest policy meeting show that Dr Yellen plans to replace those targets with a broader dashboard focusing on the quality of the data, rather than pinning it to numbers.

Members of the FOMC agreed that "if the economy continued to develop as anticipated, the committee would likely reduce the pace of asset purchases in further measured steps at future meetings", the minutes said.

The committee also decided in March to make its third cut of $US10 billion a month in bond purchases since December, pulling the programme down to $US55 billion.

The minutes confirmed that all or nearly all the FOMC members agreed on the Fed's monetary path.