Minutes minutes speak of a “significant boost” from stimulus programs
At their most recent meeting, the representatives of the US Federal Reserve were more confident about economic developments. The government's economic stimulus programs and the vaccinations would give the economy a “significant boost”, according to the minutes (minutes) of the Federal Reserve's meeting on January 26-27, published on Wednesday. The improvement in the medium-term outlook was enough to be mentioned in the statement at the time.
However, the statements do not indicate any imminent change in monetary policy. The economy is still far from the Fed's goals, the Minutes said. It will probably take some time before “substantial progress” is made. The US Federal Reserve confirmed its very loose monetary policy at its meeting in December. The key rate was not touched and left in a range of 0 to 0.25 percent. The asset purchases and loan programs continued.
In view of the job misery in the USA, the Fed sees itself in demand as an emergency aid in the Corona crisis for a long time. The monetary watchdogs believe they are still far from their goals of full employment and price stability, as the minutes of the interest rate meeting published on Wednesday at the end of January show.
At that time, they had decided to continue to support the economy with monthly securities purchases with a volume of 120 billion dollars. These should only be reduced when the situation on the job market improves radically and inflation picks up as desired.
