The Federal Reserve of the United States is expected to announce the tapering of its bond-buying program during its meeting next week, according to economists.
- A poll found that economists believe that Fed officials will signal the possible reduction of its monthly purchases, with the majority expecting that the formal announcement would come during the meeting in November.
- The September 10 to 15 survey found that economists expect the taper to start in December, much earlier than the previous expectation that the scaling down would come in 2022.
- The economists also expect rates to be retained near zero through 2022, prior to two increases of quarter points each by the end of 2023. Three more increases are likely in 2024, which would lift the upper end of the rates to 1.5%.
The Federal Open Market Committee is expected to keep rates unchanged and retain the $80-billion monthly purchases in its meeting next week.
DXY is up 0.18%.