The decisions of the US Federal Reserve are ultimately decisive for the entire capital market.
(Photo: Bloomberg)
New York, Frankfurt The US Federal Reserve (Fed) is starting its monetary policy turn: from the end of this month, it will reduce its bond purchases by 15 billion dollars a month. The Fed announced on Wednesday.
She currently buys government bonds and mortgage-backed securities for $ 120 billion a month. The purchases began at the start of the corona crisis and pushed the Fed’s balance sheet to a record $ 8.5 trillion. The reasons for the targeted exit are the solid economic growth again and the increased inflation.
However, reducing bond purchases (tapering) is only the first step in the turnaround in monetary policy. The second would be to raise key interest rates. Experts and investors have different opinions on how quickly this will continue. Recently, inflation expectations have risen significantly. Investors are therefore speculating that the Fed will react more quickly.
More soon.
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