Time for Fed to taper bond purchases but not to raise rates: Powell

The Fed has signaled it will likely begin next month to taper its $120 bn in monthly purchases of Treasury bonds and mortgage-backed securities

Federal Reserve Chair Jerome Powell on Friday said the U.S. central bank should start the process of reducing its support of the economy by cutting back on its asset purchases, but should not yet touch the interest rate dial.

"I do think it's time to taper; I don't think it's time to raise rates," Powell said in a virtual appearance before a conference, noting that there are still five million fewer US jobs now than there were before the coronavirus pandemic. He also reiterated his view that high inflation will likely abate next year as pressures from the pandemic fade.

"We think