Sundaymail Editor
The Federal Reserve, facing a labour market that may be stalling or on the cusp of a surge, is this week expected to open the door to reducing its monthly bond purchases while tying any actual change to US job growth in September and beyond.
Fed officials, including chair Jerome Powell, have said the US central bank’s US$120 billion in monthly bond purchases could be scaled back later this year as a first step towards ending the crisis-era policies implemented in the spring of 2020 as the coronavirus pandemic was taking hold. But after an unexpectedly weak gain of 235 000 jobs in August, officials will want to keep their options open, ready to reduce bond purchases as soon as the November 2 to November 3 policy meeting if employment growth rebounds and Covid-19 risks recede, but able also to delay any “taper” if the virus hinders the recovery. — Reuters
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