Fed discussed pulling back on bond purchases later this year

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve officials last month discussed the timing for beginning to dial back their extraordinary support for the U.S. economy, which has been steadily recovering from the pandemic recession. They made no firm decision on a timetable but appear to be moving toward starting a pullback before year’s end. The minutes of the Fed’s July meeting said it concluded that it would be appropriate to acknowledge that the economy was making progress in achieving the Fed’s goals on inflation and employment. As a result, the central bank is edging toward an announcement that it will soon begin paring the pace of its Treasury and mortgage bond buying, which now amounts to $120 billion a month.