Last month, the Federal Reserve Board saw that it would take some time before the conditions for curtailing large-scale asset purchase campaigns were met.
“Participants said it would take some time before substantial further progress was made towards the Commission’s maximum employment and price stability goals,” the proceedings from 16 to 17 March. According to the record Federal Open Market Committee Meeting open on Wednesday.
“Many participants articulate an assessment of progress towards long-term goals well before the Commission can determine that it is substantive enough to justify a change in the pace of asset purchases. I emphasized the importance of that. ”
At the meeting, the US central bank predicted that it would not change its $ 120 billion monthly asset purchase program and would keep benchmark lending rates near zero until at least 2023. Round of fiscal stimulus.
In the explanation, Federal Reserve System Chair Jerome Powell Post-conference reporters said the economy was a “far away” from maximum jobs and sustainable inflation of 2%. He also mentioned the thresholds set by the authorities to curtail asset purchases, saying that “it is likely that it will take some time before substantial further progress is achieved.”
Interest rate futures are pricing the possibility of a rate hike in the second half of 2022. Michael Gapen, Chief US Economist at Barclays in New York, said some of the tensions are how the Fed responds to real-world data.
Non-farm payrolls increased by 916,000 last month as increased vaccination and deregulation in the state helped the labor market recover, according to government data released Friday. However, federal officials have emphasized that they are looking at a broad dashboard of labor market conditions. Other indicators, such as workforce participation, are still below the levels seen in the previous expansion.
FOMC Minutes: The Fed saw “for a while” before the taper condition was met, the minutes
https://economictimes.indiatimes.com/markets/stocks/news/fed-saw-some-time-before-taper-conditions-met-minutes-show/articleshow/81956971.cms FOMC Minutes: The Fed saw “for a while” before the taper condition was met, the minutes