Fed Says Economy Has Progressed Toward Goals, Tees Up Bond Taper

Link: https://www.wsj.com/articles/fed-says-economy-has-made-progress-toward-its-goals-teeing-up-bond-taper-11627495233

Excerpt:

The Fed cut its benchmark interest rate to near zero in March 2020 and has been purchasing at least $120 billion a month in Treasurys and mortgage bonds to provide extra stimulus to the economy. Officials since the end of last year said those purchases would continue until they see “substantial further progress” toward their goals of low unemployment and stable inflation.

Officials said in a statement Wednesday, at the conclusion of their two-day meeting, “the economy has made progress toward these goals” this year and indicated they would “assess progress in coming meetings.”

That is a clue the Fed could outline plans to start reducing, or tapering, the purchases, later this year. The central bank’s next meetings are scheduled for Sept. 21-22 and Nov. 2-3.

Fed Chairman Jerome Powell said at a virtual news conference Wednesday that the central bank was nowhere near considering plans to raise interest rates.

Author(s): Nick Timiraos

Publication Date: 28 July 2021

Publication Site: WSJ

Fed Chairman Vows to Keep Supporting Economic Recovery

Link: https://www.thinkadvisor.com/2021/02/23/fed-chairman-vows-to-keep-supporting-economic-recovery/

Excerpt:

The Fed will continue $120 billion in monthly bond purchases and communicate any change.

Powell doesn’t expect any large and persistent increases in inflation; some pickup will be temporary.

Powell says getting the pandemic under control is needed for the economy to reopen.

Author(s): Bernice Napach

Publication Date: 23 February 2021

Publication Site: Think Advisor