The US Federal Reserve announced on Wednesday (3 November) its plans to start scaling back its $120bn monthly bond buying programme, which has played a crucial role in buoying the US economy as it contends with the ongoing pandemic and rising inflation.
The Fed's chair, Jerome Powell, made a point of distancing the announced plans to taper bond purchases with any potential action regarding rising US interest rates. "Our decision today to begin tapering our asset purchases does not imply any direct signal regarding our interest rate policy," he said. Powell said that the Fed's Committee stated its intention to continue asset purchases at a pace of at least $120bn a month "until substantial progress had been made toward" maximum employment and price stability goals. The Committee decided on Wednesday that the "economy has met this t...
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