The question is not so much one of tapering, which at this point seems a foregone conclusion, but more about the timing of future rate hikes,” Mizuho Bank said in a commentary. “Markets are largely in wait-and-see mode ahead of the U.S. Those purchases are intended to keep long-term loan rates low to encourage borrowing and spending.
The Fed’s chair, Jerome Powell, has signaled the Fed will announce after its policy meeting that it will start paring its $120 billion in monthly bond purchases as soon as this month.
