(Federal Reserve) The Federal Reserve will begin reducing the $120 billion monthly bond purchases by $15 billion later this month following traction in economic recovery.
The Federal Open Market Committee said that the monthly reduction would comprise $10 billion in treasury securities and $5 billion in mortgage-backed securities.
The FOMC maintains that the amount could be adjusted each month, depending on the economic outlook.
The committee also announced that it seeks to attain the maximum employment rate and maintain the inflation rate at 2% in the long term.
The FOMC said it would increase its treasury and mortgage-backed securities holding by over $70 billion and $35 billion, respectively later in the month.
The Fed has no intention to increase interest rates, clearing speculation of possible higher rates.
The FOMC expects the tapering in bond purchase to close by July next year.
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