The Federal Reserve signalled it is close to another increase in short-term interest rates and is preparing to start paring back its multi-trillion dollar asset holdings this year as the US economy recovers.
Most Fed policymakers said at the May 2-3 rate-setting meeting that a further increase in short-term interest rates will be needed “soon” if the economy stays on track, in a sign that the central bank is preparing to tighten policy again as early as the June meeting.
Minutes from the meeting also showed the Fed is advancing in plans to pare back its balance sheet, with policymakers discussing a strategy for gradually scaling back reinvestments of maturing securities.