Fed moves toward slashing bond holdings to fight inflation

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve is moving closer to rapidly shrinking its huge $9 trillion stockpile of bonds in the coming months to fight high inflation, a move that would contribute to higher borrowing costs for consumers and businesses. In minutes from their most recent policy meeting three weeks ago, Fed policymakers said they would likely cut their holdings by about $95 billion a month, nearly double the pace they implemented five years ago when they last shrank their balance sheet. At its meeting in March, the Fed raised its benchmark short-term rate for the first time in three years.