Federal Reserve Chairman Jerome Powell stated on Wednesday that the central bank will start to slow down the pace of its bond acquisitions “well before” raising interest rates. The Fed has been purchasing at least $120 billion a month of Treasury debt and mortgage-backed securities since last June to hold down long-term borrowing costs. Since December, the central bank has stated that the economy needs to make “substantial further progress” toward its goals of maximum employment and 2% inflation before it downsizes those purchases. “We will taper asset purchases when we’ve made substantial further progress toward our goals, from last December when we announced that guidance,”Mr. Powell stated in a virtual event held by the Economic Club of Washington, DC “That would in all likelihood be before-well before-the time we consider raising interest rates.”The Fed has stated that it will keep rates close to zero until it sees the labour market return to complete employment and inflation increase to 2% and is predicted to moderately surpass that level for some time. Mr. Powell reiterated that he believes it is highly unlikely that the Fed would raise interest rates this year and noted that most central-bank officials see rates remaining close to zero through 2023.