Democratic senator urges Fed to begin trimming bond buys

A prominent Democratic senator, saying he is concerned about inflation, is urging the Federal Reserve to start trimming its monthly bond purchases

WASHINGTON -- A prominent Democratic senator, saying he is concerned about inflation, is urging the Federal Reserve to start trimming its monthly bond purchases. In a letter to Fed Chairman Jerome Powell, Sen. Joe Manchin said that he had become “increasingly alarmed” that the Fed has continued to buy $120 billion per month in Treasury bonds and mortgage-backed securities, even with the recession triggered by the COVID pandemic over and “our strong recovery well underway.” While a number of Republicans have criticized the Fed for not beginning to taper the monthly bond purchases even as signs of inflation pressures mount, Manchin is the first Democrat to raise similar criticism. In his letter to Powell dated Thursday, Manchin said he was urging the Fed “to immediately reassess our nation’s stance of monetary policy and begin to taper your emergency stimulus response.”