Fed takes first step toward raising interest rates

Published November 3, 2021 6:01pm ET



The Federal Reserve will begin slowing its massive monthly purchases of government bonds after months of economic uncertainty stemming from the COVID-19 pandemic, a first step toward raising its interest rate target.

The central bank announced on Wednesday it will start reducing its monthly purchases of $120 billion in Treasury bonds and mortgage-backed securities. The news came after a highly anticipated two-day meeting of the Fed’s monetary policy committee.

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