[ForexNews]

Today's WSJ features a preview of next week's Fed meeting (11-12 Aug.). The report noted that the Fed "has shifted into a less aggressive stance" and "is now allowing some programs to wind down naturally and weighing which others to keep going. The article notes that on the agenda will be :

Whether to extend the TALF: while this is a decision strictly for the Board, not the FOMC, this issue is set to be discussed next week. Originally the TALF was intended to finance up to $1trn of loans; so far only $30bn of this has been taken up: the article comments that still officials consider that it has helped to improve credit markets and so could be extended into 2010, beyond the December expiry;

Whether to extend the programme to purchase $300bn of US Treasuries, due to expire next month. The article comments that "officials aren't convinced it was highly effective at bringing down long-term interest rates. Moreover, they worry about the costs of continuing the programme". So far the FRBNY has bought $237bn. Two former Fed Governors (Gramley and Meyer) have also commented that it will probably announce the end of this programme for next month.