Fed keeps rates flat, says tapering to start later this month

By Ovunc Kutlu

ANKARA (AA) - The US Federal Reserve said Wednesday it kept its benchmark interest rate unchanged between 0.00% and 0.25% and noted tapering will start later in November.

The much-awaited tapering process of reducing the $120 billion monthly asset purchases will begin later this month, the Federal Open Market Committee (FOMC) said in a statement after the conclusion of a two-day meeting.

The FOMC said it decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.

"Beginning later this month, the Committee will increase its holdings of Treasury securities by at least $70 billion per month and of agency mortgage-backed securities by at least $35 billion per month," the statement said.

"Beginning in December, the Committee will increase its holdings of Treasury securities by at least $60 billion per month and of agency mortgage-backed securities by at least $30 billion per month," it added.