Washington, Oct 31 (AFP\/APP):The Federal Reserve is set to begin removing a major plank of the stimulus policies it rolled out last year as the pandemic began, a sign of the progress the US economy has posted since the historic downturn.<\/p>\n
While the American central bank is always capable of surprises, its top officials have widely signaled that they will announce at their policy meeting next week the start of a drawback in their monthly purchases of bonds and securities, which they began as the economy collapsed in March 2020 to stop the crisis from becoming a catastrophe.<\/p>\n
The world’s largest economy has undoubtedly come a long way from those dire days, but with an unpleasant passenger: inflation, which has spiked throughout much of this year, and caused some economists to name the Fed’s easy money policies as an accessory.<\/p>\n
Fed Chair Jerome Powell could touch on these topics when he speaks following the two-day Federal Open Market Committee meeting beginning Tuesday, and may also offer the central bank’s latest views on the state of the recovery.<\/p>\n
“I think it’ll be one of the biggest surprises in a long time if they didn’t taper. They’ve been about as explicit as you can hope the Fed will ever get about a future action,” Michael Feroli, chief US economist at J.P. Morgan, told AFP.<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington, Oct 31 (AFP\/APP):The Federal Reserve is set to begin removing a major plank of the stimulus policies it rolled out last year as the pandemic began, a sign of the progress the US economy has posted since the historic downturn. While the American central […]<\/p>\n
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