Powell Signals Fed Likely to Start Winding Down Bond Purchases in Mid-November

Federal Reserve Chair Jerome Powell signaled Wednesday that the central bank is likely to begin winding down its massive bond-buying program in mid-November, a move that would mark a major step in the Fed's efforts to combat inflation.

Powell's comments, made at a news conference following the Federal Open Market Committee's two-day policy meeting, sent stocks sharply higher and bond yields lower.

The Fed has been buying $120 billion of Treasury bonds and mortgage-backed securities each month in an effort to keep interest rates low and stimulate the economy.

Powell said the Fed is likely to announce a plan to reduce the pace of its bond purchases at its next meeting in November.

He said the Fed is not yet ready to raise interest rates, but that it could start to consider doing so next year.

Powell's comments were in line with expectations, and they suggest that the Fed is taking a cautious approach to winding down its stimulus measures.

The Fed is trying to balance its goals of keeping inflation low and promoting economic growth.

Inflation has been rising in recent months, and the Fed is concerned that it could continue to rise if the economy continues to grow at a strong pace.

The Fed's bond-buying program has been a major factor in keeping interest rates low, and winding it down could lead to higher interest rates.

Higher interest rates could slow economic growth, but they could also help to keep inflation under control.

The Fed is expected to continue to monitor economic data closely in the coming months before making a final decision on when to raise interest rates.