Fed announces tapering of emergency stimulus programme

The US Federal Reserve (the Fed) will begin tapering the emergency stimulus programme and trim its purchases of government bonds by $10 billion and mortgage-backed securities by $5 billion.

In November, the pace of purchases will fall from $120 billion to $105 billion, and in December to $90 billion.

The Fed also kept the federal funds rate target range at 0% to 0.25%.

The statement noted that growth in economic activity and employment are influenced by the epidemiological situation and vaccination progress, which also help to curb inflation.

The regulator plans to maintain accommodative monetary policy to achieve maximum employment and an inflation rate of 2% in the long run.

As noted, PayPal co-founder Peter Thiel called bitcoin at $60,000 an indicator of inflation.

Earlier, Jack Dorsey pointed to signs of looming hyperinflation, which ‘will change everything around’.

Senator Rand Paul expressed optimism about the prospects of cryptocurrencies in the global financial system, calling fiat money ‘unreliable’.

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