Members opened their discussion with the observation that the main driver of financial markets over the past month had been the reappraisal by the markets of the future path of monetary policy in the United States. Following its policy meeting in June, the Federal Reserve had reiterated that it would not consider raising the federal funds rate as long as the unemployment rate remained above 6½ per cent and inflation expectations were well behaved. However, the Fed had added that if its forecast for the economy came to pass, it would expect to begin scaling back its rate of bond purchases later this year, and to end ... (full story)