• İstanbul -1 °C
  • Ankara -5 °C

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

UPDATE - Fed keeps rates flat, says tapering to start later this month
Bank to begin reducing monthly pace of asset purchases by $10B for Treasury securities, $5B for mortgage-backed securities

ADDS INFORMATION

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 process of reducing the $120 billion monthly asset purchases, known as tapering, 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.

The FOMC said similar reductions in the pace of net asset purchases would likely be appropriate each month but noted it is prepared to adjust the pace of purchases if needed, based on changes in the economic outlook.

The Fed's $120 billion monthly purchases included $80 billion in Treasuries and $40 billion in mortgage-backed securities to keep the American economy and markets afloat during the coronavirus pandemic.

Fed Chair Jerome Powell said Sept. 22 that tapering is expected to be concluded by the middle of 2022.

Although the FOMC reiterated its stance on inflation, saying it remains elevated, largely reflecting factors that are expected to be transitory, it stressed imbalances in the economy.

"Supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to sizable price increases in some sectors," the statement said.

"Progress on vaccinations and an easing of supply constraints are expected to support continued gains in economic activity and employment as well as a reduction in inflation," it added.



source: News Feed
This news is a total 26 time has been read
UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
This news yet comment has been added .
Other News
All Rights Reserved © May 2014 US Muslims | Unauthorized and the resources published.
Haber Scripti: CM Bilişim