URGENT: U.S. Fed says scale-back of asset purchases "may soon be warranted"

© Kyodo News

The U.S. Federal Reserve on Wednesday signaled that a decision is nearing on beginning to scale back a massive bond-buying program launched in response to the coronavirus pandemic.

After a two-day meeting of the policy-setting Federal Open Market Committee, the central bank said it will maintain its target range for the federal funds rate at 0 to 0.25 percent and will continue buying $120 billion in Treasury bonds and other assets each month.

But the Fed said in a statement that it "judges that a moderation in the pace of asset purchases may soon be warranted" if the economy continues to show progress towards the bank's employment and inflation goals.