High Inflation ‘Transitory,’ Jobs Recovery Expected, MBS Purchases Slowed: Fed

Originally published on November 3, 2021, by Howard Schneider and Ann Saphir for Reuters.com.

The Federal Reserve threw its weight back behind the drive for a full U.S. jobs recovery on Wednesday, restating its belief that current high inflation is "expected to be transitory" and, despite risks to that view, arguing that price pressures will ease and pave the way for stronger employment and economic growth in the months to come.

Even as the U.S. central bank announced it was tucked away one of its main pandemic-fighting tools, by trimming its massive bond-buying program beginning this month, its latest policy statement and Fed Chair Jerome Powell's remarks in a news conference signaled it would stay patient - and wait for more job growth - before raising interest rates.

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