Time for Fed to taper bond purchases but not to raise rates, Powell says

Published by
Reuters

By Lindsay Dunsmuir and Ann Saphir (Reuters) -Federal Reserve Chair Jerome Powell on Friday said the U.S. central bank should start the process of reducing its support of the economy by cutting back on its asset purchases, but should not yet touch the interest rate dial. “I do think it’s time to taper; I don’t think it’s time to raise rates,” Powell said in a virtual appearance before a conference, noting that there are still five million fewer U.S. jobs now than there were before the coronavirus pandemic. He also reiterated his view that high inflation will likely abate next year as pressures…

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