The US Central Bank has decided to cut off huge portfolio bonds in October, while reference interest rates remain unchanged for the time being.

Source: Beta Thursday, September 21, 2017 | 08:09

Writes:
https://www.b92.net/biz/vesti/svet.php?yyyy=2017&mm=09&dd=21&nav_id=1305873

Federal Reserve (Fed) announced that they will gradually reduce their portfolio of bonds worth $ 4.5 trillion in October, bought to boost the economy after the outbreak of the 2008 global financial crisis.

The Fed plans to reduce the bond portfolio dominated by government and mortgage bonds by spending less money every month for replacing them.

The Fed's plan is to spend $ 10 billion in bonds in October on bonds in October to reach $ 50 billion in bond bonds in October 2018.

The central bank has decided to keep the short-term reference interest rates at the level between one and 1.25 percent. The Fed says the labor market is strengthening, but inflation is still below the desired two percent annually.

Fed officials continue to expect to raise short-term reference interest rates once again by the end of the year and announce three raises in 2018 if there is a continuously low inflation rate, while for 2019, now, they predict two rather than three interest rate rises.

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