Fed pulls back economic aid in face of rising uncertainties
“It’s a view Powell has maintained even as inflation has jumped to a three-decade high, imposing a burden on households that are paying more for food, rent, heating oil and other necessities. In his remarks Wednesday after the Fed ended its latest policy meeting, Powell acknowledged the hardships that higher prices have inflicted on many families.
‘People who are living paycheck to paycheck or seeing higher grocery costs, higher gasoline costs … we understand completely what they’re going through,’ he said.
In the meantime, the Fed said, it will begin to try to counter those inflation pressures by reducing its $120 billion in monthly bond purchases by $15 billion a month, starting this month. Those purchases, launched last summer, have been intended to hold down long-term interest rates to spur borrowing and spending. With the economy recovering, they aren’t needed, Powell suggested.”