Fed to begin slowing economic aid as inflation worries rise | www.WDIO.com

Fed to begin slowing economic aid as inflation worries rise

Fed to begin slowing economic aid as inflation worries rise Fed to begin slowing economic aid as inflation worries rise |  Photo: MGN

CHRISTOPHER RUGABER AP Economics Reporter
Created: November 03, 2021 02:20 PM

WASHINGTON (AP) - The Federal Reserve will begin dialing back the extraordinary economic aid it’s provided since the pandemic erupted last year, a response to high inflation that now looks likely to persist longer than it did just a few months ago.

In a statement after its latest policy meeting, the Fed said it will start reducing its $120 billion in monthly bond purchases in the coming weeks, by $15 billion a month, though it reserved the right to change that pace.

Those purchases have been intended to hold down long-term interest rates to encourage borrowing and spending. With the economy recovering, that’s no longer needed. 

Credits

CHRISTOPHER RUGABER AP Economics Reporter

Copyright 2021 The Associated Press. All rights reserved.

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