Fed’s Kashkari Is Comfortable With Plans to Taper Bond Buying Soon

Federal Reserve Bank of Minneapolis President Neel Kashkari thinks short-term interest rates will stay near zero for a few more years, but he supports a likely imminent pullback on the central bank’s bond-buying stimulus.

The Federal Reserve has been buying about $120 billion a month in Treasury and mortgage bonds since last year to help ensure smooth market functioning and support the economy during the coronavirus pandemic. It also slashed its benchmark interest rate to near zero.