Fed moves toward slashing bond holdings to fight inflation

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The Federal Reserve is moving closer to rapidly shrinking its huge $9 trillion stockpile of bonds in the coming months to fight high inflation, a move that would contribute to higher borrowing costs for consumers and businesses

Many economists have said they worry that the Fed has waited too long to begin raising rates and that the policymakers might end up responding so aggressively as to trigger a recession.opened the door two weeks ago to increasing rates by as much as a half-point at upcoming meetings, rather than by a traditional quarter-point. The Fed hasn't carried out any half-point rate increases since 2000.

 

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