Fed: Gradual taper could begin by mid-November

The Federal Reserve could begin reducing the pace of monthly asset purchases as soon as mid-November, according to minutes from the September meeting,

The summary, released Wednesday, indicated the tapering process could see a monthly reduction of $10 billion in Treasury bills and $5 billion in mortgage-backed securities.

Officials at the meeting expressed concern about inflation, saying it could last longer “than they currently assumed.”

Fed could reduce the $120 billion a month in bond buys slowly. The minutes indicated the central bank probably would start by cutting $10 billion a month in Treasury bills and $5 billion a month in mortgage-backed securities.

Fed is currently buying at least $80 billion in Treasury bills and $40 billion in MBS. The target date to end the purchases should there be no disruptions would be mid-2022.