Fed likely to begin tapering bond purchases at its next meeting

THE US Federal Reserve is almost certain to begin tapering its bond purchases at its next meeting in early November, with the central bank possibly raising interest rates much sooner and more aggressively than markets are anticipating.

This was the assessment of William Dudley, the former president and chief executive officer of the Federal Reserve Bank of New York, at a virtual event on Thursday (Oct 7).

The 68-year-old American, who is also vice-chairman and a permanent member of the Federal Open Market Committee, made these comments at a Bank of Singapore client roundtable hosted by its chief economist Mansoor Mohi-uddin.