Fed Dials Back Bond Purchases, Plots End to Stimulus by June
Central bank affirms forecast that factors driving high inflation are “expected to be transitory”
Fed Chairman Jerome Powell has been seeking to assure investors that inflation risks are being closely monitored, while not appearing so worried that markets might anticipate a faster pivot to tighter money.
Photo: Sarah Silbiger – Pool via CNP/Zuma Press
The Federal Reserve approved plans to begin scaling back its bond-buying stimulus program this month and end it by June, a major step toward withdrawing its aggressive, pandemic-driven economic support amid a recent inflation surge.
Fed officials in their postmeeting statement Wednesday said they still anticipated elevated inflation would fall because high readings are “largely reflecting factors that are expected to be transitory.”
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Source: https://www.wsj.com/articles/fed-dials-back-bond-purchases-plots-end-to-stimulus-by-june-11635962417?mod=pls_whats_news_us_business_f
