Federal Reserve Chair Janet Yellen testifies before Congress. Photo: Pablo Martinez / AP

The Federal Reserve will begin reducing the stock of government and mortgage bonds it amassed to help drive down interest rates and stabilize the housing market in the aftermath of the financial crisis, a move that signals the central bank's growing confidence in the U.S. economy.

Steady as she goes: The Fed will shrink the value of its portfolio of bonds by just $10 billion per month, a fraction of its $4.5 trillion stockpile. The modest nature of the move reflects the Fed's recognition that despite historically low unemployment rates, wage growth has been tame and inflation remains below the bank's 2% annual target.

An earlier version of this post incorrectly stated the Federal Reserve is "selling off" bonds when, in fact, it is reducing its portfolio by declining to reinvest returned principal of bonds held to maturity.

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Mike Allen, author of AM
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Trump sees court fight as virus respite

Spotted at Trump's rally last night at Harrisburg International Airport in Middletown, Pa. Photo: Joshua Roberts/Reuters

At a rally in Pennsylvania last night, President Trump basked in adulation for Judge Amy Coney Barrett and said: "She should be running for president!"

Why it matters: She might as well be. The Trump campaign is thrilled to be talking about something besides the president's handling of COVID, and is going all-in to amp up the court conversation.

Mike Allen, author of AM
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Democrats feel boxed in on strategy for Barrett confirmation fight

Photo: Chen Mengtong/China News Service via Getty Images

Democrats privately fear that going too hard on Judge Amy Coney Barrett in her confirmation hearings could wind up backfiring, if senators are perceived as being nasty to an accomplished woman.

Driving the news: Yesterday afternoon, NBC posted video of Coney Barrett outside her house in South Bend, Ind., loading four of her seven children — two of the seven adopted from Haiti, and another with Down Syndrome — into her Honda Odyssey minivan, then driving them all to her Air Force ride to Washington. "Good luck, Democrats," a Republican tweeted.

Updated 59 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 a.m. ET: 32,881,747 — Total deaths: 994,821 — Total recoveries: 22,758,171Map.
  2. U.S.: Total confirmed cases as of 10 a.m. ET: 7,079,909 — Total deaths: 204,503 — Total recoveries: 2,750,459 — Total tests: 100,492,536Map.
  3. States: New York daily cases top 1,000 for first time since June — U.S. reports over 55,000 new coronavirus cases.
  4. Health: The long-term pain of the mental health pandemicFewer than 10% of Americans have coronavirus antibodies.
  5. Business: Millions start new businesses in time of coronavirus.
  6. Education: Summer college enrollment offers a glimpse of COVID-19's effect.