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The US budget deficit is set to exceed 20% of gross domestic product this year and 10% in 2021. As such, the Federal Reserve has little room to taper its bond purchases. 

In fact, the central bank may have to ramp up bond buying if debt sustainability becomes an issue, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio,

The minutes from the July Fed meeting released Wednesday pushed back against additional measures like the yield curve control, under which the central bank targets a specific yield level at the short or long end of the curve.