Fed to begin slowing economic aid as inflation worries rise

By CHRISTOPHER RUGABER
AP Economics Reporter

WASHINGTON (AP) — The Federal Reserve will begin dialing back the extraordinary economic aid it’s provided since the pandemic erupted last year, a response to high inflation that now looks likely to persist longer than it did just a few months ago. In a statement after its latest policy meeting, the Fed said it will start reducing its $120 billion in monthly bond purchases in the coming weeks, by $15 billion a month, though it reserved the right to change that pace. Those purchases have been intended to hold down long-term interest rates to encourage borrowing and spending. With the economy recovering, that’s no longer needed.