The current high inflation is due to supply chain problems related to COVID and will decrease as infections do, he said. “If we withdraw our adaptation to the economy (…) I would bet that it will not solve the bottlenecks of the supply chain”, Held.
According to excerpts from the minutes of the last monetary policy meeting published yesterday, the US Federal Reserve could begin to reduce its asset purchases from November and finish them in the middle of next year.
“The participants (of the meeting) noted that if a decision is made to start reducing purchases at the next meeting” of the agency, “the reduction process could begin (…) in mid-November or mid-December,” he said. the summary of the appointment of September 21 and 22. The Fed’s Monetary Committee will meet again on November 2 and 3.
“Most of the participants considered that if the economic reactivation continues on the right track globally, a process of progressive reduction” of asset purchases “concluded by the middle of next year would probably be appropriate,” the document highlighted.
These monthly purchases could be cut each month by 10 billion dollars in the case of Treasury bonds and 5 billion in the case of financial products attached to mortgage loans, the statement added.
At that rate, it would take eight months to complete these purchases, which currently total $ 120 billion each month, and serve to inject money into markets, facilitate credit and lower interest rates.
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