The US economy is at an inflection point. We're going into a period of faster growth, more job creation. The main risk is another spike in cases. We have developed significant in-house expertise on the pandemic in the last year. The Fed does not comment on fiscal policy. Current level of debt is sustainable. This is not the time to prioritize debt concern. Over time, in longer-run, US federal budget is on unsustainable path. We've said we expect to keep rates where they are until meet three-part test.
FED'S LAST EMERGENCY MEASURES REVIEW
“The support from fiscal and monetary policy should lead to a strong 2nd half,” Cleveland Fed President Loretta Mester said on Monday during her CNBV appearance. The Fed policymaker also praised the recent recovery in jobs report while citing concerns as the employment indicator is still 8.5 million below the pre-pandemic levels.
In an interview with Fox Business Network on Thursday, San Francisco Federal Reserve President Mary Daly noted that they are not expecting to achieve either of the Federal Reserve's goals in 2021, as reported by Reuters.
In an interview with Bloomberg TV on Wednesday, Kaplan reiterated that the Federal Reserve's desire is to anchor inflation expectation at 2%, per Reuters. "The nice and desirable thing about infrastructure spending is that is a long-term investment."
FED Latest News
FED Latest Analysis
March Fed decision review
As widely expected, the Federal Open Market Committee (FOMC) refrained from making any major policy changes at its meeting today. But, the Committee upgraded its assessment of the current state of the economy. Specifically, the FOMC now looks for stronger GDP growth, higher inflation and lower unemployment in 2021 than it did three months ago.
Hold your horses – or at least just a bit. Only seven out of 17 Federal Open Markets Committee members foresee a rate hike in 2023 and only four in 2022. That is a dovish outcome in comparison to market pricing of the first increase in borrowing costs coming in 2022.
January Fed decision review
As expected, the FOMC made no major policy changes at today's meeting. That said, the committee did note that the recovery has moderated in recent months and stressed that the outlook remains critically dependent on the course of the virus. In our view, the FOMC is more likely to provide “too much” accommodation in coming months rather than “too little.”
Trying not to rock the boat – that is often the role of central banks – but the seas are storming. The financial world is fascinated with wild moves in stocks as Gamestop (NASDAQ: GME) and epic battles between retail traders and hedge funds.
December Fed decision review
Markets want money– shares initially dropped when the Federal Reserve offered only guidance but no new bond-buying. However, a dose of honey can go in some ways. Jerome Powell, Chairman of the Federal Reserve, reaffirmed the bank's commitment to supporting the economy and also stated that the institution has the ability to buy more bonds.
November Fed Decision Review
The Fed has left its rates unchanged as expected, making minor changes to the accompanying statement. At first, it seemed that the world's most powerful central bank was succeeding in not rocking the boat, striking a balance between expressing content about the recovery so far but airing concern about the risks of the virus. However, when Federal Reserve Chairman Jerome Powell began speaking, he gave the market reasons to tune in. He began by saying that the pace of the recovery has moderated. That served as a hint that the Fed is ready to act.