Janet Yellen

Yellen defends Federal Reserve's bond buying as the central bank starts reducing its stockpile

Yellen defends Federal Reserve's bond buying as the central bank starts reducing its stockpile

The Federal Reserve announced Wednesday that it would start slowly reducing the trillions of dollars in bonds it bought to stimulate the economy, another milestone in the central bank’s efforts to return to a normal monetary policy after the Great Recession.

The long-awaited reduction in the Fed’s $4.5-trillion balance sheet, to begin next month, comes amid a cloudy short-term economic outlook and great uncertainty at the central bank. There are several vacancies on the Fed board, and there could be a change in leadership early next year if President Trump decides...

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