Fed could end its bond purchases by middle of next year

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Fed could end its bond purchases by middle of next year

The Federal Reserve could wrap up the tapering of its bonds purchases by the middle of next year, Federal Reserve Chairman Jerome Powell said on Wednesday.

Powell's remark came at the beginning of his press conference following the release of the Fed's latest policy statement in which it said a delay in the pace of asset purchases may soon be warranted but made no reference to how long that process could take. The Fed has been buying $120 billion of Treasuries and mortgage-backed securities a month to support the economy's recovery from the coronavirus pandemic.