On Wednesday, April 28, the FOMC of the US Federal Reserve Board confirmed analysts’ forecasts, keeping the interest rate unchanged at 0.25%.
FOMC voted 11 to 0 to maintain monetary policy
The Committee voted unanimously to maintain the current monetary policy. The volume of purchases of Treasury bonds at the level of 80 billion dollars per month and the volume of purchases of mortgage-backed securities at the level of 40 billion dollars per month were kept. Bond purchases will continue until significant progress is made against the stated inflation and employment targets.
The Fed noted that indicators of economic growth and employment have improved, as well as some recovery in sectors of the economy that have been damaged by the pandemic.
Jerome Powell: economic recovery is far from over
During a press conference, Fed Chairman Jerome Powell noted that the recovery is still intermittent and far from over. Service costs grew at a faster pace
Powell believes that inflation is likely to continue to rise before slowing down. We will likely see temporary upward pressure on prices from rising costs. It seems unlikely that inflation will rise on a sustained basis amid an underutilized workforce
The pandemic has not left such a deep scar on the economy as we feared about a year ago, the head of the Fed said. Along with this, the economy cannot fully recover until people have confidence that nothing threatens it.
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