Fed Signals Start of Tapering Discussion "Progress Made Toward Policy Goals" (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Federal Reserve (Fed) has indicated that it has begun discussions on tapering asset purchases.

On the 28th (local time), the Fed maintained the zero interest rate in a statement released after the Federal Open Market Committee (FOMC) regular meeting. The Fed also assessed that "the economy has made significant progress toward the Fed's goals" and stated that "it will continue to evaluate progress at future meetings."

CNN reported that this suggests the Fed is preparing to begin tapering.

The Fed is currently purchasing $120 billion worth of Treasury securities and mortgage-backed securities (MBS) each month. The market expects the Fed to start tapering asset purchases, considering economic recovery and rising real estate prices.

CNBC reported that "although the Fed assessed that the economy continues to improve despite concerns over the spread of COVID-19, sectors most severely affected have seen improvements but have not fully recovered."

Following the Fed's statement, U.S. Treasury yields have shown little change and are currently at 1.253%.

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