The Federal Reserve announced on Wednesday that it will start reducing bond purchases this November. Then, the whole program will end by next year.
In terms of interest rates, there was no news of a hike since the central bank believes that the current high inflation is just temporary.
But global supply problems exacerbate the risk of much higher inflation.
Nevertheless, after the announcement of reduced bond purchases by $ 15 billion to $ 120 billion, the Fed still did not set a date for raising interest rates.
They said it will remain near zero until inflation reaches 2%.
In addition, the Fed is certain that the inflation rate will decline, but the process will take longer.
Dollar demand dropped amid these statements, while gold rose in price.
Inflation on the Fed's preferred indicator, the Personal Consumption Expenditures (PCE) index, has doubled its target since May. But Fed members are reluctant to change their stance until it becomes clear that growth rates will not slow down.
