Powell: Fed Could Start Phasing Out Asset Purchase Program This Year

The Federal Reserve, the US umbrella organization of central banks, may start phasing out its major asset purchase program that was rigged due to the corona crisis later this year.

But there will be no rush to raise interest rates, said Fed Chair, Jerome Powell. He delivered a speech at the virtual meeting of central bankers in Jackson Hole, Wyoming.

The Fed now buys USD 120 billion worth of bonds every month to stimulate the economy and counteract the impact of the corona crisis. But now that the economy is recovering strongly, the call for these support measures to be phased out is increasing.

Several Fed leaders already said on Thursday that it is time to put an end to this gradually.