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The Fed Will Start Tapering Its Bond-Purchase Plan From November
Summary: The Federal Reserve will maintain the benchmark interest rate unchanged at 0%-0.25%, which is in line with market expectations, the FOMC statement shows. In addition, the Fed announced that it will start tapering its asset purchase plan later this month. The central bank will reduce its current purchases by $15 billion a month in November ...
The Federal Reserve will maintain the benchmark interest rate unchanged at 0%-0.25%, which is in line with market expectations, the FOMC statement shows.
In addition, the Fed announced that it will start tapering its asset purchase plan later this month. The central bank will reduce its current purchases by $15 billion a month in November and December (current monthly purchases are about $120 billion). Among them, the monthly purchase of US Treasury bonds will fall from $80 billion to $70 billion, and the monthly purchase of government-backed mortgage bonds will reduce from $40 billion to $35 billion.
The Fed said that it may be appropriate to similarly tapering on a monthly basis, but if the economic outlook changes, it will adjust the rate of purchases at any time.
By Mary Liu
Tags: Fed,Inflation Rate
Link: The Fed Will Start Tapering Its Bond-Purchase Plan From November [Copy]
