US economy: Fed says tapering bond buying ‘may soon be warranted’

On Wednesday, the US central bank prepared the ground to possibly begin dialing back some of the extraordinary support it has given the economy during the pandemic. 

One of the biggest questions hanging over the United States economy right now is when the Federal Reserve will start reining in its cheap money policies.

On Wednesday, the Fed prepared the ground to possibly start dialing back some of the extraordinary support it has given the economy during the coronavirus pandemic.

The Fed, which is the US central bank, ended its two-day policy meeting on Wednesday by leaving its benchmark interest rate unchanged. No big surprise there. The Fed slashed rates to near zero in March 2020 when the pandemic first struck the US economy.