Fed cites economic 'progress' in hint it could start reducing bond purchases

The Federal Reserve hinted about tapering its massive monthly government bond purchases on Wednesday after acknowledging the economy has made progress.

Fed Chairman Jerome Powell and the rest of the Federal Open Market Committee concluded a two-day meeting on Wednesday in which they discussed a timeline for when the central bank should begin tapering its purchases of government bonds, which would be a first step toward reversing the emergency easy-money policies put in place during the depths of the pandemic recession.