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The central bank begins its meeting to discuss reducing its support

The US Federal Reserve (Fed) opened a monetary policy meeting on Tuesday, with the result that the economic recovery is now firm and inflation is expected to begin to reduce its asset purchases. Stronger than expected.

The Monetary Policy Committee (FOMC) meeting began as scheduled at 1:00 pm (GMT 5:00 pm), a central bank spokesman said.

The central bank will close its meeting on Wednesday at noon. A press release will be issued at 2:00 pm (GMT 6:00 pm) and its chairman Jerome Powell will hold a press conference at 2:30 pm (GMT 6:30 pm).

This meeting is eagerly awaited because the central bank must begin to reduce its support for the US economy from the beginning of the crisis.

Specifically, the central bank is expected to announce that it will begin to reduce its asset purchases, detailing the timing and bringing them down from $ 120 billion a month to now to zero, probably by the middle of next year.

This pace could be as low as $ 15 billion each month: $ 10 billion for Treasury bills, and $ 5 billion for MBS (financial products backed by real estate loans), according to discussions held by Fed officials during their last meeting. At the end of September.

These acquisitions made it possible to prevent the financial crisis from exacerbating the economic crisis, by making debt more liquid and reducing long-term rates.

But the economic recovery is now on track, and promises that inflation will be stronger and more stable than expected, causing disruptions in the global supply chain and strong consumer demand.

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In September, it accelerated to 4.4% year-on-year, the highest since 1991, but remained stable for a month, up 0.3%, used by the central bank to assess the economic situation, according to the PCE index.

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On the other hand, key rates in the 0 0.25% range from March 2020 will not be raised immediately.

Some central banks have already raised their banks – Norway, New Zealand, Brazil, … the UK may also announce an increase on Thursday.

In contrast, the European Central Bank (ECB) maintained its supportive measures, emphasized patience, and announced that its Australian counterpart would raise tariffs in 2023, but not before.