The Federal Reserve signaled it's on track to begin withdrawing some of its support for the U.S. economy later this year, even as the resurgent coronavirus weighs on the country
A trader works on the floor of the New York Stock Exchange on Wednesday, Sept. 22, 2021. Stocks rose broadly on Wall Street on Wednesday ahead of an update from the Federal Reserve on how and when it might begin easing its extraordinary support measures for the economy. | Richard Drew/AP PhotoThe Federal Reserve on Wednesday signaled it is on track to begin withdrawing some of its extraordinary support for the U.S.
That means the policymakers could start to slow their monthly purchases of U.S. government debt and mortgage-backed securities in November or December. Those bond purchases — totaling a staggering $120 billion a month — are intended to supercharge the central bank’s efforts to keep borrowing costs low while the economy recovers.
The Fed’s meeting came amid jitters in the stock market over the past couple of weeks as investors nervously eye legislative drama in Washington, where the government will run out of funding by the end of the month and the debt ceiling needs to be raised over the next few weeks to avoid defaulting on bills the U.S. has already racked up.
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