Surprisingly, some of the Federal Reserve members have revealed that they are intending to end quantitative easing by the end of this year. Despite remarks given by members of Fed, analysts believe that Fed won’t be coming with any policy changes any time soon. The news of stopping quantitative easing hit the financial market when a meeting minute, held on 12^th of December was released, which quoted “several” Fed members would like to stop bond-buying program by the end of this year.

This message has not only signaled Fed’s intention over the sought 4 year easing program, but also has increased market fear regarding higher interest rate amidst reduced money supply. Economists and market participants are seeing this scenario with a great deal of surprise and scrutinizing on opinions of Fed members on easing program. Amid release of Fed’s minute, treasury yields and dollar have gained in line with sought anti-easing possible policies. Despite having some members opining on stopping the quantitative easing, the top positioned executives including vice chairman and chairman (Ben Bernanke) of Federal Reserve are observed not showing any actions or opinions at this point of time.

The market expects Fed to revise the policy and come up with new reforms only when its monetary targets of unemployment and inflation are within a reachable boundary. The sought unemployment and inflation figures are 6.5 percent and 2.5 percent respectively.

Being more precise, Fed’s minute goes as follows:

"In considering the outlook for the labor market and the broader economy, a few members expressed the view that ongoing asset purchases would likely be warranted until about the end of 2013, while a few others emphasized the need for considerable policy accommodation but did not state a specific time frame or total for purchases. Several others thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet. One member viewed any additional purchases as unwarranted."

Now, it is only time that would reveal whether the Fed shall accommodate any policy changes on its sought four year quantitative easing package or continue as intended initially.