The Federal Reserve officials have hinted they might end their monthly bond buying earlier than they had expected, according to WSJ. The anticipated move reflects quicker growth this year.
- At the moment, Fed officials were not ready to withdraw or reduce their $120 billion in monthly purchases of mortgage and Treasury securities.
- Fed officials are still expecting the latest inflation waves to be temporary and pushed by shortages and bottlenecks stemming from the Covid-19 crisis.
- Most of the Fed officials, in the last month’s meeting, anticipated that they would increase interest rates by 2023 from near zero.
Fed officials have not specified the exact date when they will cut back their bond purchases, but they say they need to see a further increase before tampering.
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