WASHINGTON, April 14 (Reuters) – The Federal Reserve will cut its bond purchases before committing to raise interest rates, US central bank Chairman Jerome Powell said on Wednesday.
“We will get to the point where we will reduce asset purchases when we have made substantial additional progress toward our goals since last December,” Powell said in comments to the Economic Club of Washington.
“That would probably be before, long before, when we consider raising interest rates. We have not voted on in that regard, but it is the sense of direction,” he added.
Powell also said a decision has yet to be made on whether the Fed’s balance sheet will subsequently be allowed to shrink.
(Report by Howard Schneider, Edited in Spanish by Manuel Farías)