The February edition of the Semiannual Monetary Policy Report that the Fed prepares twice a year for the US Congress was published.
Unprecedented fiscal and monetary incentives and easing of strict social distancing restrictions supported a rapid recovery in the US job market.This past summer, the pace of earnings slowed and employment remained well below. From pre-epidemic levels, Fed Chairman Jerome Powell’s report to Congress will be presented next week. .
MONETARY POLICY WILL CONTINUE TO SUPPORT THE ECONOMY
“Although the ongoing vaccination campaign offers hope of returning to more normal conditions later this year, the Kovid-19 outbreak continues to place a heavy burden on economic activity and the labor market in the United States and the world,” the report said. It was evaluated.
In the report, which recalled that weak demand and low oil prices reduced inflation, it was noted that the Federal Open Market Committee (FOMC) kept the policy rate close to zero in this difficult environment and continued buying bonds to support the economic recovery. .
“These measures, along with the Committee’s strong guidance on interest rates and the balance sheet, will ensure that monetary policy continues to provide strong support to the economy until the recovery is complete,” the report said. expression was used.