Policy makers at the US Federal Reserve were split over the merits of slowing its $85bn a month asset purchases in September, highlighting the difficult task facing Janet Yellen as she prepares to take chairmanship of the central bank.
The minutes of the latest Federal Open Market Committee, published yesterday, will give investors little clarity on what economic conditions would trigger a taper, at a time of mounting concern over political gridlock in Washington and the risk of a US default.
Markets were taken by surprise last month when the Fed chose to keep its purchases unchanged, prompting a rally in stocks and bonds, and flows of capital back into emerging markets.