The Federal Reserve vowed to keep cash in the financial markets on Wednesday until the US economic recovery is safe, The promise of long-term help that fell short of the hope of an immediate move to shore up an epidemic-related slide recently. After a policy meeting, Which reviewed short-term risks to the economy and the new promise of the coronovirus vaccine, Fed Chair Jerome Powell acknowledged that the US central bank's equipment suite is not suited to the most pressing needs today, home and business. Powell said at a news conference after a two-day meeting, "The parts of the economy are weak, They are service sector businesses, Which includes close contact."
"They are not returning from financial conditions, Rather than the spread of the virus "which is now intensifying across the country, They said. Unemployed families or struggling businesses need immediate cash, Pavel said, Some top legalists in Congress were working to negotiate towards a new $ 900 billion epidemic relief bill.
For the Fed, The more relevant horizon is the middle of next year, When Powell said the central bank hoped the country could approach widespread immunity from coronovirus, And may see an increase in economic activity. Powell told reporters, "This issue next four, Five, It is six months old. "You have to think sometime in the middle of next year. You will feel comfortable feeling entangled in a wide range of activities."
His comments seemed to suggest that what some market analysts had given - that the Fed would at some point either increase the pace of government bonds or is currently buying at a rate of $ 120 billion a month. But a vaccine in the United States K's rollout has hoped that the economy could pull out of the recession that began in March and spoke of a second Great Depression.
In quarterly estimates issued with policy statements, Fed officials extended their outlook for the economy's performance this year and in 2021. They now see just 2.4 percent hit on GDP in 2020 - compared to estimates of 6.5 in June. St. Gush. Instead of an estimated 4 percent in September GDP growth is projected to be 4.2 percent on the median next year. Policy controllers also reduced the unemployment rate for 2021 from 5.5 percent to 5 percent at the end of their projected year.
With interest rates anchored at zero probability for years to come, The Fed added a more explicit promise to continue the current bond-buying program until "substantial further progress" in restoring full employment and meeting its 2 percent inflation target. Powell said, "Our current policy stance is appropriate for the economy, "Pavel said the economic situation if the Federal would consider changing its bond purchases changed.
The vote on the policy statement was unanimous, and for the first time the Fed's U.S. The Treasury connects monthly purchases of bonds and government-backed securities to a set of economic conditions. It was already pledging to make those purchases "in the coming months", when recession-fighting programs could close.
"We expected the maturity of asset purchases to expand. They did not do so,"said Kathy Bosjasic, chief US financial economist at Oxford Economics."But this guidance, further guidance on QE (quantitative easing) is very powerful... Which gives some clarity, which is good. "US shares traded extensively on Wednesday, closing at record levels of Nasdaq composites. Treasury yields declined slightly, while the dollar remained above major trading partner currencies.
Excitation talks
The conclusion of the Fed's last policy meeting of 2020 caused a year-long catastrophe, In which he reduced the interest rates, Promoted purchase of bonds, And took other extraordinary measures to prevent the economic genocide of the coronovirus epidemic. Fed officials, although, In recent months, the federal government has been urged to take steps for economic recovery with more relief, Once COVID-19 infection has increased and more.
Lock and ban on businesses across the country
US retail sales declined more than expected in November, Commerce Department reported on Wednesday, By adding increasing signs of recession to economic recovery. According to a Reuters tally, More than 304000 people have died in the United States of COVID-19 since the onset of the epidemic.
Lawmakers in Congress are "shutting down" on a $ 900 billion COVID-19 aid bill that would include $ 600 to $ 700 incentive checks and extended unemployment benefits. Preventing more aid from Washington, Millions of unemployed Americans were slated to lose unemployment benefits after Christmas.
Powell told reporters that despite some progress in economic recovery and unemployment rates, The pace of reform is slow and there is a share of people who are either working or looking for work to remain below pre-pandemic levels. "However - there has been a lot of progress in the labor market since spring, We will not lose the millions of Americans who live out of work, " They said.
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