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U.S. central bank, the Federal Reserve, has announced that it will begin tapering from the end of this month, as previously announced. In order to stimulate the economy, the Fed is now gradually reducing the amount of money it has released into the market. In the end, it is read as a signal that the central bank will gradually end its quantitative easing policy that increases the money supply in the market. However, the base rate remained at zero.



This is Washington correspondent Yunsu Kim.



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US Federal Reserve announced plans to reduce asset purchases and tapering after a two-day meeting of the Federal Open Market Committee.



It has been 20 months since the massive quantitative easing since the COVID-19 pandemic in March last year.



[Jerome Powell/Fed Chairman: The Fed will cut monthly net asset purchases by $10 billion in Treasuries and $5 billion in mortgage-backed securities.] The



Fed will cut asset purchases by $15 billion in November and December alone has only come up with a plan.



For the time being, I think a decrease in purchases at this rate is appropriate, but we will do it for two months first and then look at the situation a little more.



In September, the Fed unveiled a tapering initiative that would cut asset purchases by $15 billion per month over an eight-month period.



Since the COVID-19 pandemic last year, the Federal Reserve has declared unlimited quantitative easing to support the economic recovery and has provided liquidity to the market by purchasing $80 billion in U.S. Treasuries and $40 billion in mortgage-backed securities every month.



The Fed, however, kept interest rates at zero.



[Jerome Powell/Chairman of the US Fed: Today's decision to begin tapering is not a direct signal that it is considering a rate hike.]



Concerns about a faster-than-expected economic recovery and inflation that the Fed has put the brakes on easing policy are the main factors. Analysis of what caused it.



As the tapering has already been announced several times and has been reflected in the market, the New York Stock Exchange rather rose and continued to record all-time highs for four consecutive trading days.