Yellen faces first dissenting voice as Fed tightening draws nearer

The Fed reduced its monthly asset purchases as expected, from $35bn per month to $25bn, but abandoned its assessment that unemployment “remains elevated” after the rate fell to 6.1% in June. While it continues to maintain there remains “significant under utilisation of labour resources”, chair Janet Yellen faced her first dissenting voice on the tone of the central bank’s monthly statement. Board member Charles Plosser dissented over the statement that the Fed will likely keep rates near record lows for a “considerable time”, on account of recent improvements seen in the economy. T...