Powell says Fed will discuss speeding up bond-buying taper at December meeting
[ad_1]
Jerome Powell (Federal Reserve Chairman) indicated Tuesday, that the central bank might intensify efforts to reduce the economic impact of its interventions.
The Fed Chief stated that he believes reducing monthly bond purchases can be done faster than the current $15 billion per month schedule.
Powell stated that he expected the matter to be addressed at the December meeting.
“At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases … perhaps a few months sooner,” he said. “I anticipate that we’ll discuss this at our next meeting.”
The Federal Open Market Committee (which sets the Fed’s monetary policy, including interest rates, and boosts activity via bond purchases) announced that the Fed would reduce its pace by $15 billion per month. This includes $10 billion in Treasurys, and $5 billion for mortgage-backed securities.
However, it was stated that this will be true in November and December. The post-meeting statement also indicated that “is willing to adjust pace of purchases” if the economic outlook changes.
At least $120 Billion was bought by the Fed each month. This included $40 billion in MBS and $80 billion in Treasurys.
This is breaking news. For more information, please check here.
[ad_2]