Fed Prepares to Taper, but Markets Crave More Insight on Rate Rises

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Fed Prepares to Taper, but Markets Crave More Insight on Rate Rises
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The Fed is likely to announce today that it will begin reducing its bond-buying program, but its comments on inflation and interest rates may be the real news

The Federal Reserve is likely to announce Wednesday that it will begin steadily reducing its bond-buying program, the biggest step the central bank has taken toward reversing its pandemic-era stimulus.

, or taper, those purchases this month has been so heavily telegraphed by Fed officials that the focus of the two-day meeting that ends Wednesday has shifted toward how they will characterize inflation risks—which carries important implications for how soon they might raise interest rates.

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