With its preferred inflation indicator at 30-year highs, the Federal Reserve begins the withdrawal of the monetary stimulus launched to combat Covid-19.
The central bank of the United States announced today that it will cut its purchases of public and mortgage debt this month and next month by, respectively, 10,000 and 5,000 million dollars.
By not buying that debt, the Fed injects
less liquidity into the economy
, which amounts to a tightening of monetary policy.
The measure had already been informally indicated by the central bank, as part of its policy to prevent the financial market from overreacting, something that already happened in 2013 when it carried out a similar measure. Currently, the Federal Reserve is buying $ 120 billion a month (103 billion euros) of
Treasury bonds and mortgage debt
.
The US central bank has tried to reassure the market by insisting that it
does not plan to raise interest rates in 2022
.
However, the tone in relation to prices has changed, declaring in the statement announcing these measures that "inflation continues to be high", although it is, according to their analysis, a reflection "in its greatest degree. Factors that are expected to be transient "due to the disruption of global supply chains due to the closure of factories, ports, and trade routes due to Covid-19.
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