Fed doubles pace of tapering, warms up to rate hikes in 2022 as inflationary pressures rise

Fed doubles pace of tapering, warms up to rate hikes in 2022 as inflationary pressures rise
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The Federal Reserve announced that it would move more quickly to pare back its pandemic-era easy money policies as Fed officials grow concerned about the persistence of inflationary pressures.On Wednesday, the policy-setting Federal Open Market Committee said it would double the pace by which it winds down its asset purchase program.The FOMC also signaled a strong likelihood of an interest rate hike next year, which would be the first since the central bank slashed short-term borrowing costs to near-zero in March 2020.Since the depths of the pandemic, the Fed has added trillions of dollars in U.S. Treasuries and agency mortgage-backed securities to signal its support for financing conditions. The Fed had set a course in November to “taper” the pace of those aggregate purchases by $15 billion per month, a …

The post Fed doubles pace of tapering, warms up to rate hikes in 2022 as inflationary pressures rise appeared first on Populist Press 2021 ©.

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