Wednesday, 27 October, 2021

US Fed expected to announce tapering asset purchases

US Fed expected to announce tapering asset purchases

Popular News

NEW YORK: The US Federal Reserve will probably hint at its meeting next week that it is moving toward announcing a reduction in monthly asset purchases in November, according to a Bloomberg survey of economists.

Two-thirds of economists expect the tapering announcement at the Fed’s November 2-3 meeting, with more than half seeing the tapering starting in December, Xinhua news agency reported citing the survey released on Friday as saying, report agencies.

The Fed will hold its next policy meeting on September 21-22. The survey of 52 economists, which was conducted September 10-15, also showed that the Fed would hold interest rates near zero through 2022 before delivering two quarter-point increases by the end of the following year.

The Fed has pledged to keep its benchmark interest rate unchanged at the record-low level of near zero, while continuing its asset purchase program at least at the current pace of $120 billion per month until “substantial further progress” has been made on employment and inflation.