Fed to taper bond purchases by $15B a month as it unwinds pandemic-era stimulus

The Federal Reserve on Wednesday announced plans to begin slowing its aggressive bond-buying program by $15 billion a month in mid-November, the first step that policymakers will take in reversing a historic level of stimulus for the U.S. economy amid a recent inflation surge.

The Federal Open Market Committee said at the conclusion of its two-day policy-setting meeting this week that it would lower its monthly purchase of long-term Treasury bonds by $10 billion a month and monthly purchase of mortgage-backed securities by $5 billion a month, bringing the total November purchase to $105 billion, down from $120 billion. It will also reduce asset purchases by $15 billion in December.