Here's why you should care the Fed is set to announce it's tapering its bond-buying stimulus
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The Federal Reserve, in a sign of how far the U.S. economy has recovered from the COVID-19 recession, is likely to announce this week that it will scale back the bond-buying stimulus it began in the early days of the health crisis.
The move could reveal the approach the Fed is taking to a recovery that has become more complicated as inflation picks up and growth slows.
Normally, economic growth and inflation move together. The Fed lowers interest rates to stimulate borrowing and jump-start economic activity and raises them to curtail growth and head off a spike in inflation.
The Fed isn’t likely to raise its key short-term interest rate from near zero at a two-day meeting that starts Tuesday, or anytime soon.
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