The Fed announced today that it would taper its purchases of Treasury and mortgage bonds by another $10 billion while still holding interest rates near zero. That reduces the agency’s total monthly bond buys to $35 billion.
It also moderated its outlook for yearly economic growth, cutting GDP estimates from 2.8-3% to 2.1-2.3% following a disappointing first quarter, according to a CNBC report.
The Fed also slightly lowered its unemployment rate expectations form their current estimate of 6.1-6.3% to 6.0-6.1%.
The Fed’s Open Market Committee said that although the economy “had rebounded,” unemployment “remains elevated.”
The Federal Reserve continues to taper its bond buys as expected after a meeting of the agency’s rule-making committee.