Fed Keeps Rates on Hold, Set to Begin Bond Buying Taper This Month

• The Federal Open Market Committee on Wednesday detailed plans to begin scaling back asset purchases later this month and said the bar to begin the liftoff in rates would be more "stringent." 
• The monthly bond purchases of $120 billion, $80 billion in Treasuries and $40 billion in mortgage-backed securities would be trimmed by $15 billion a month. 
• Under the taper plans, the Fed will reduce monthly Treasury purchases by $10 billion and mortgage-backed securities by $5 billion. Still, the Fed's balance sheet will continue to expand, but at a reduced pace.  
• The taper puts the Fed on track to end its bond-buying program by mid-2022, but Fed cautioned that the pace of bond-buying may change depending on incoming economic data.

(Source: Investing.com)