ANKARA

The US Federal Reserve on Wednesday removed the word “transitory” from describing inflation, and indicated it will end tapering, the process of reducing monthly asset purchases, earlier and faster than previously planned.

"In light of inflation developments and the further improvement in the labor market, the Committee decided to reduce the monthly pace of its net asset purchases by $20 billion for Treasury securities and $10 billion for agency mortgage-backed securities," the Fed said in a statement after its much-anticipated two-day meeting.

In a November meeting, the Fed said it started to reduce the monthly pace of its net asset purchases by $10 billion of Treasury securities and $5 billion for agency mortgage-backed securities.

Although Fed Chairman Jerome Powell said Sept. 22 he expects tapering to end in mid-2022, he shifted from a dovish stance to a hawkish tone Nov. 30 while testifying before the Senate, saying it would be "appropriate to consider wrapping up the taper of asset purchases  a few months sooner."

Before the House of Representatives on Dec. 1, he also said the Fed will use its tools to fight record inflation.

US consumer prices jumped 6.8% in November, from the same month a year ago -- its largest annual increase since 1982.