The Federal Reserve said that a reduction of the size of its monthly bond purchases may “soon be warranted” if the economy continues to progress …
The Federal Reserve said that a reduction of the size of its monthly bond purchases may “soon be warranted” if the economy continues to progress as expected and the forecasts of Fed officials moved the first rate hike forward from 2023 to 2022. Indicators of economic activity and employment have continued to strengthen, the Fed said in a statement at the conclusion of its two-day meeting. The Fed credited this strength to progress on vaccinations and “strong policy support.” The Fed has been buying at least $80 billion of Treasuries and $40 billion of mortgage-backed securities each month. Last December, the Fed said it would continue the program until “substantial further progress” had been made toward its legally prescribed goals of maximum unemployment and price stability.
