Fed signals bond-buying taper may start soon, split on 2022 hike

US stocks rose slightly, while yields on 10-year Treasuries maintained an earlier decline; the dollar remained lower after the decision

Federal Reserve officials signaled they would probably begin tapering their bond-buying program soon and revealed a growing inclination to start raising interest rates in 2022.

If progress toward the Fed’s employment and inflation goals “continues broadly as expected, the committee judges that a moderation in the pace of asset purchases may soon be warranted,” the US central bank’s policy-setting Federal Open Market Committee said Wednesday in a statement following a two-day meeting.  

The Fed also published updated quarterly projections which showed officials are now evenly split on whether or not it will be appropriate to begin raising the federal funds