US Federal Reserve Chairman Jerome Powell said Wednesday the central bank may conclude tapering -- the process of reducing accumulating $120 billion monthly assets on its balance sheet -- by the middle of 2002.

"While no decisions were made, participants generally viewed that so long the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate," Powell said at a news conference after the conclusion of the Fed's two-day meeting.

"Even after our balance sheet stops expanding, our elevated holdings of longer term securities will continue to support accommodative financial conditions," he said.

The Federal Open Market Committee’s (FOMC) earlier statement said moderation in the pace of asset purchases may soon be warranted, indicating tapering would begin soon.

Powell said the timing and pace of the coming reduction in asset purchases "will not be intended to carry a direct signal regarding the timing of interest rate liftoff."

He noted that half of FOMC members forecast favorable economic conditions will be fulfilled by the end of next year.

The chair emphasized that the Fed's monetary policy will remain accommodative until the bank achieves maximum employment and price stability goals./agencies