Challenges for overseas economies  Action by the Federal Reserve to gradually reduce the size of its asset purchases is sensible for the U.S. economy since it is showing signs of recovery, and it would be a natural policy decision for the United States.
However, because it will not take effect in the United States until 2016 and because other regulatory and supervisory tasks created by Dodd-Frank and other initiatives need to be completed more quickly, we have not yet built out this tool through policy statements or other institutional steps.