(July 27): Federal Reserve officials said they would begin running off their US$4.5 trillion ($6.1 trillion) balance sheet “relatively soon” and left their benchmark policy rate unchanged as they assess progress toward their inflation goal.

The start of balance-sheet normalisation -- possibly as soon as September -- is another policy milestone in an economic recovery now in its ninth year. The Fed bought trillions of dollars of securities to lower long-term borrowing costs after cutting the main interest rate to zero in December 2008.

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