Fed says it may soon start removing stimulus

The Federal Reserve said on Wednesday that increasing Covid-19 cases have slowed the US economic recovery, but it may nonetheless be ready to “soon” start removing stimulus.

The economy has healed to the point that the central bank may slow the pace of its massive monthly bond purchases “if progress continues broadly as expected,” the policy setting Federal Open Market Committee (FOMC) said in a statement after concluding its two-day meeting.

In their quarterly forecasts, members of the committee now see growth of just 5.9 percent this year rather than the seven percent projected in June, but still expect at least one interest rate hike next year. (AFP)