Fed tries to calm market jitters over QE tapering

A leading member of the US Federal Reserve has tried to calm markets by stressing plans to start tapering its QE programme depend on the economy recovering.

William Dudley, chief of the Fed's New York branch, also said concerns the Federal Open Market Committee (FOMC) would raise interest rates from their current "target range" of 0% to 0.25% were "out of sync" with its thinking, the Telegraph reports. The comments were made after hints by the Fed it would start reducing its asset purchase programme caused a huge sell-off across equity and bond markets. Yields on 10-year treasuries rose as high as 2.61% this week from as low as 1.63% in May. Mortgage rates on 30-year fixed loans also soared to their highest average in two years, reported ...