Business

Fed: It will take some time to make significant progress on targets

The Fed published the minutes of the meeting of the Federal Open Market Committee (FOMC), held from January 16 to 17.

In the minutes of the last meeting, where the policy rate remained constant between 0-0.25 percent, it was observed that the indicators related to economic activity and employment have taken an upward turn in the last period.

In the repeated minutes it was stated that the course of the economy will significantly depend on the course of the new type of coronavirus epidemic (Kovid-19), including progress in vaccination, and that the current public health crisis will continue to pressure. on economic activity, employment and inflation, and will pose significant risks to the economic outlook.

It was stated in the minutes that the economic recovery has recently accelerated and the economy continues to resist the epidemic.

“IT CONTINUES TO CREATE SIGNIFICANT RISKS FOR THE APPEARANCE OF THE OUTBREAK”

“Despite the positive indicators and the improvement in the public health situation, participants agreed that the path to the economy remains quite uncertain as the economy remains far from the long-term goals of the Committee and the outbreak continues to pose significant risks to the outlook, “the Fed minutes said. statement was included.

The minutes noted that the current policy position and direction were appropriate for new incentives for economic recovery, and it was emphasized that some participants stated that policy changes should be based primarily on observed results rather than estimates.

In the minutes, it was noted that general financial conditions were favorable and that asset purchases since March 2020 significantly eased financial conditions and provided significant support to the economy.

In the meeting minutes, “Participants noted that it would likely take some time to achieve significant progress on the Committee’s maximum employment and price stability targets and that, according to the Committee’s results-based guidance, purchases of assets will continue at least at the current rate until then. ” the declaration took place.

The minutes indicated that some participants emphasized the importance of communication regarding the change in the asset acquisition rate, and it was noted that the timing of such communications will depend on the development of the economy and the rate of progress toward the Committee’s goals.

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