Fed move signals turning point for liquidity

The US Federal Reserve's plan to wind down quantitative easing from next month will sign a turning point of the global liquidity environment, which will have a long-term impact on major economies' interest rates and asset prices, analysts said after the US central bank's statement.

The Fed on Wednesday decided to reduce its holdings of treasury and agency securities starting from October, following the steps described in June in the so-called balance sheet normalization program.

The Federal Open Market Committee (FOMC) also announced it would maintain the target range for the federal funds rate at 1 to 1.25 percent, with an unchanged "accommodative" monetary policy stance, meeting market expectations.