(Washington) The American Central Bank (Fed) believes it’s time “to begin reducing its asset purchases, but its president said Friday that it was” premature “to raise key rates soon, with a 10-day meeting for the next currency.
“As the time draws near to reduce our asset purchases, it will now be premature to tighten policy by raising rates,” Jerome Powell said at a virtual conference.
“We are on the right track to start gradually reducing our asset purchases, which will be completed by the middle of next year if the economy develops as widely as expected,” he reiterated.
Property purchases, one of the Fed’s anti – crisis instruments, are $ 120 billion a month. Now that the financial recovery has begun, the company wants to gradually reduce them to zero.
The timetable will be announced at the next Fed Monetary Committee meeting on November 2-3 and the cuts will begin the same month.
Key rates have been reduced to 0 to 0.25% in March 2020, but will have to wait a while to take off again.