The Federal Reserve promises “strong support” for the economy

Washington (AP) — The Federal Reserve Board of Governors states that its low interest rate policy provides “strong support” to the economy as it recovers from the coronavirus pandemic.

In a biannual report to Congress on monetary policy released Friday, the Fed shows that it plans to maintain its support until recovery from last year’s severe recession progresses further. I did.

According to the Federal Reserve Board, progress in vaccination resumed the economy earlier this year and led to strong economic growth, but the protracted effects of the pandemic continued to weigh on the economy and employment was still far below what it was before. Said-Pandemic level.

According to the Federal Reserve Board, material shortages and employment difficulties hindered activity in many industries, and bottlenecks and other temporary factors boosted inflation.

The Federal Reserve Board discussed the content of the report at its last meeting, June 15-16. The minutes of these discussions showed that the central bank has begun to consider when and how to start reducing the $ 120 billion monthly bond purchases it used to curb long-term interest rates.

Minutes show that the Fed is approaching cuts in these purchases, but most private economists expect actual tapering to begin by the end of this year, or perhaps by the beginning of 2022. not.

Federal Reserve Board Chair Jerome Powell will testify about financial reporting at a House and Senate hearing starting Wednesday.

Posted on