Fed Officials Prepare for November Reduction in Bond Buying
Phasing out the Fed’s pandemic-era stimulus by the middle of 2022 could clear the path for an interest-rate increase
Federal Reserve officials will seek to forge agreement at their coming meeting to begin scaling back their easy money policies in November.
Many of them have said in recent interviews and public statements that they could begin reducing, or tapering, their $120 billion in monthly purchases of Treasurys and mortgage-backed securities this year. While they are unlikely to do so at their meeting on Sept. 21-22, Fed Chairman Jerome Powell could use that gathering to signal they are likely to start the process at their following session, on Nov. 2-3.