The minutes of the last meeting of the Federal Reserve of the United States (Fed) revealed that the economic conditions in the country are far from the long-term objectives and that the supportive political stance should continue until the objectives are achieved.
The Fed published the minutes of the meeting of the Federal Open Market Committee (FOMC), held from January 26 to 27.
In the minutes of the last meeting, where the policy rate remained constant between 0-0.25 percent, it was pointed out that the rate of recovery of economic activity and employment has slowed down in recent months.
In the minutes, it was stated that the economy will depend on the course of the epidemic of the new type of coronavirus (Covid-19), including vaccination, that the current public health crisis will continue to pressure economic activity, employment, and inflation. and will pose significant risks to the economic outlook.
IT WILL TAKE SOME TIME TO IMPROVE THE ECONOMY
Noting that overall financial conditions continue to be favorable, the minutes read: “Participants stated that economic conditions are currently far from the Committee’s long-term goals and the political stance should remain supportive until these goals are achieved.” the declaration took place.
It was noted in the minutes that it will likely take some time to make significant progress with the economy moving away from targets.
In the minutes, which was expressed to support the continuation of the guidance on the federal funds rate and the purchase of assets, it was stated that asset purchases will continue at the current rate, at least until significant progress is made on the goals. of employment and inflation.
In the minutes, it was noted that the expansion in the Fed’s balance sheet significantly eased financial conditions and provided support to the economy.