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Shares hit by Fed taper warning and virus fears; oil prices extend losing streak – business live | Business

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The minutes from the last US Federal Reserve meeting reveal that, while no firm decisions were made, “most participants… judged that it could be appropriate to start reducing the pace of asset purchases this year”. This means that as the US economy recovers from the Covid crisis, America’s central bank will start pulling back some of the massive economic stimulus it has introduced – earlier than expected.

However, this doesn’t mean that the Fed will raise interest rates more quickly. The minutes show that many officials believe that the Federal Open Market committee (FOMC) should “clearly reaffirm the absence of any mechanical link between the timing of tapering and that of an eventual increase in… the federal funds rate”.

Andrew Hunter, senior US economist at Capital Economics, Hunter doesn’t expect…

Click here for full article…www.theguardian.com