Wed, October 27, 2021

international

U.S. Fed officials prepare for tapering asset purchases in November: media


While Fed officials are unlikely to announce a plan for tapering asset purchases at their meeting on Sept. 21-22, Fed Chairman Jerome Powell could use that gathering to signal they are likely to start the process at their following session on Nov. 2-3, according to The Wall Street Journal.

U.S. Federal Reserve officials will seek to forge agreement at their coming meeting later this month to begin tapering the central bank's asset purchases in November, The Wall Street Journal reported on Friday.

While Fed officials are unlikely to announce a plan for tapering asset purchases at their meeting on Sept. 21-22, Fed Chairman Jerome Powell could use that gathering to signal they are likely to start the process at their following session on Nov. 2-3, according to the Journal.

Under the plans taking shape, Fed officials could reduce those purchases at a pace that allows them to conclude asset buying by the middle of next year, the report said.

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 U.S. dollars per month until "substantial further progress" has been made on employment and inflation.

Related Stories

Many Fed officials have said in recent interviews and public statements that the central bank could begin reducing asset purchases this year.

"Assuming the economy continues to improve as I anticipate, it could be appropriate to start reducing the pace of asset purchases this year," Federal Reserve Bank of New York President John Williams said Wednesday at a virtual event.

"I will be carefully assessing the incoming data on the labor market and what it means for the economic outlook, as well as assessing risks such as the effects of the Delta variant," he said.

Published : September 11, 2021