Fed to slow down “stimulus” as inflation caused by its policies rises

Source: KTAR News

“The Federal Reserve will begin dialing back the extraordinary stimulus it’s provided since the pandemic erupted last year, a response to an improving economy and escalating concern that high inflation now looks likely to persist longer than it did just a few months ago. In a statement Wednesday after its latest policy meeting, the Fed said it will keep interest rates near zero but start reducing its $120 billion in monthly bond purchases in the coming weeks, by $15 billion a month. Those purchases have been intended to hold down long-term interest rates to spur borrowing and spending. With the economy recovering, that’s no longer needed. The Fed’s announcement comes against backdrop of surging prices across the economy — in food, rent, heating oil, autos and other necessities — that have imposed a burden on households and have become a political liability for the Biden administration and its Democratic allies in Congress.” (11/03/21)