Wednesday, 28 July, 2021
(DJ) Fed Says Economy Has Made Progress Toward Its Goals, Teeing
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2021-07-28 18:00:33.407 GMT
By Nick Timiraos
(Dow Jones) — WASHINGTON — The Federal Reserve indicated that the economy
has made progress toward the central bank's employment and inflation goals,
and officials offered a hint they could begin to reduce their asset purchases
later this year.
The Fed since the end of last year has said its monthly purchases of $120
billion in bonds would continue until the economy achieves "substantial
further progress" toward the Fed's goals of low unemployment and inflation
reaching 2%. On Wednesday, the Fed said that "since then, the economy has made
progress toward these goals, and the Committee will continue to assess
progress in coming meetings."
Officials had been set to deepen their deliberations over how and when to
begin paring, or tapering, their asset purchases, which they initiated in
March 2020 to quell an incipient market panic. With their short-term benchmark
interest rate pinned near zero, they have continued to purchase Treasurys and
mortgage-backed securities at the current pace since June 2020 to provide
additional stimulus by holding down longer-term interest rates.
Write to Nick Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
https://blinks.bloomberg.com/news/stories/QWYVCX0799MO
