Fed officials expect it will be ‘some time’ before it starts tightening policy, minutes show
Federal Reserve officials indicated at their last meeting that the pace of asset purchases is unlikely to change anytime soon while the central bank pursues its economic goals.
The Federal Open Market Committee on Wednesday released minutes from the March 16-17 meeting as investors looked for indications about where policy may be heading in the future. The meeting summary indicated that while officials saw the economy gaining substantially, they see much more progress needed before ultra-easy policy changes. Members said the $120 billion a month in bond purchases “were providing substantial support to the economy.”
it’s too bad that you fail to explain that the FRBNY buys those bonds from the primary dealers who are given straight cash to do whatever they want with so of course you say the “economy” is doing great…if you are on the list in cap#2 it’s great..otherwise fuck you
“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then.” The adherence to “outcome-based guidance” is a pledged that the Fed will wait until the economy shows “substantial further progress” toward the dual goals of full employment and inflation that runs around 2%. The guidance is a shift in policy for the Fed, in which it previously would adjust policy in anticipation of inflation.
The Fed’s policymaking arm voted to keep short-term borrowing rates anchored near zero and to continue buying at least $120 billion in bonds each months. In addition, the committee raised its outlook for economic growth and inflation ahead. The median outlook for GDP tin 2021 went to 6.5%, a big upgrade from the 4.2% expectation in the December projections.
same story here for years–always better in the second half of this year or next…
During a meeting with the media a few hours before the minutes were released, Chicago Fed President Charles Evans said it would take “months and months” of higher inflation “before I’m even going to have an opinion on whether this is sustainable or not.” However, Chairman Jerome Powell and other central bank leaders have said they view the rise in rates as a reflection of stronger growth expectations rather than uncomfortable inflation pressure.
stronger growth expectations that you, IMF, World Bank and every other central bank and ‘economist’ keeps pimping.
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