At the end of November, the Fed begins a reduction in the rhythm of asset purchases by 15,000 million dollars a month

The Federal Open Market Committee of the Federal Reserve (FOMC) announced that at the end of November it will begin to reduce the monthly rate of its asset purchases by 10 billion dollars in Treasury Bonds and 5 billion more in mortgage-backed bonds.

As anticipated by the FOMC and Fed Chairman Jerome Powell since September, the conditions of economic recovery in the United States allow initiating the withdrawal of liquidity, the so-called tapering, on the resources it injected as of March 2020 , as an extraordinary measure to limit the risk of a failure in the availability of dollars given the uncertainty caused by the Great Confinement due to the pandemic.

In a statement of the seventh Monetary announcement of the Year, the Committee specified that “it considers it appropriate to maintain similar reductions in the rate of net asset purchases every month, but he is prepared to adjust them if the economic outlook warrants it. “

Private sector analysts had already anticipated that given this withdrawal rate, the extraordinary liquidity injected by the Fed During the 19 months that the pandemic has lasted, from March 2020 to October this year, it will finish being collected between May and June.

This information is released half an hour before the Fed chairman himself, Jerome Powell explain in detail the decision in the conference that happens after the currency announcement is known.