Concerns about the end of 2021 for stock markets if asset tapping is done early

MUMBAI: The US Federal Reserve's asset purchase program should be considered a few months earlier than previously expected, said Federal Reserve Chairman Jerome Powell.

Powell's statement came in response to a question posed during a Senate Banking Committee hearing in Washington. For Indian stock markets, 2021 started with a strong tone.

To support the US economy during the Corona era, its central bank launched a ખરીદી 120 billion-a-month bond-buying program, which is now in the process of being cut.

The Federal Reserve is scheduling the asset purchase program to be completed by mid-November 205, beginning in November. The Federal Reserve's Open Market Committee is meeting on December 16-17, at which a decision may be taken on early tapping.

Powell also told the Banking Committee that the Federal Reserve would make every effort to fight inflation. In the US, October inflation was at a 20-year high of 6 per cent.

On the one hand, if the Federal Reserve launches an early taper at a time when the recovery in the economy is in jeopardy due to Omicron, the mood of investors in stock markets around the world, including India, will not change and the end of 2021 may be weak in terms of stock market.