The economy has strengthened to the extent that the central bank is reducing its monthly securities purchases.
The United States the central bank announces that it will begin a gradual reduction in securities purchases as the economy has strengthened.
The central bank has bought $ 120 billion a month in federal bonds and mortgage-backed securities from the market to mitigate the financial damage of the coronary virus pandemic.
In the first phase, monthly purchases of federal bonds will be reduced by $ 10 billion and mortgage-backed securities by $ 5 billion.
In other words, federal bonds will be purchased for $ 70 billion and mortgage-backed securities for $ 35 billion, a decrease of $ 15 billion from the current rate.
In December, purchases of federal bonds will be reduced to $ 60 billion and purchases of mortgage-backed securities to $ 30 billion.
Securities purchases the aim was to ensure that banks could lend on favorable terms to companies and households in financial difficulties.
Read more: The coron virus pandemic forced the most powerful central banks to take emergency measures – they may begin to dismantle during the autumn
Following their closure, the central bank is preparing to raise its key interest rate, which is currently in the range of 0-0.25%.
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