The Fed leaves interest rates unchanged and announces the start of tapering, or the reduction of asset purchases starting in November. The cost of money remains unchanged between 0 and 0.25%.
Inflation is high due to factors that are expected to be temporary, says the Fed and the road to recovery “continues to depend on Covid”: risks continue to weigh on the outlook.
The Fed is ready to “adjust” the speed of tapering, or the process of reducing asset purchases that will start in November with a total drop in purchases of $ 15 billion. During this month, the Fed will purchase at least $ 70 billion in Treasuries and $ 35 billion in mortgage-backed securities, down from $ 120 billion in October purchases. “In December, the Fed will buy 60 billion in Treasuries and 30 billion in mortage-baked security,” reads the note released by the Fed at the end of the two-day meeting.
Source From: Ansa
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