ThinkCivics News
An educated citizenry is a vital requisite
for our survival as a free people.
Join ThinkCivics+
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
No Result
View All Result
ThinkCivics News
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
Join ThinkCivics+
No Result
View All Result
ThinkCivics News
Join TC+
Home Economy

Fed officials say easy policy will stay in place until economic ‘outcomes’ are achieved

ThinkCivics Newswire by ThinkCivics Newswire
April 9, 2021
in Economy
Reading Time: 3 mins read
0
0
Fed officials say easy policy will stay in place until economic ‘outcomes’ are achieved
 

Federal Reserve officials indicated at their last meeting that easy policy will stay in place until it produces stronger employment and inflation, and won’t be adjusted based merely on forecasts.

The Federal Open Market Committee on Wednesday released minutes from the March 16-17 meeting as investors looked for indications about where policy may be heading in the future.

The meeting summary indicated that while officials saw the economy gaining substantially, they see much more progress needed before ultra-easy policy changes.

Members said the $120 billion a month in bond purchases “were providing substantial support to the economy.”

“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then.”

The adherence to “outcome-based guidance” is a pledge that the Fed will wait until the economy shows “substantial further progress” toward the dual goals of full employment and inflation that runs around 2%.

The guidance is a shift in policy for the central bank, in which it previously would adjust policy in anticipation of inflation. The minutes said members agreed that changes in policy “should be based primarily on observed outcomes rather than forecasts.”

Markets reacted little to the news, though some questioned whether the Fed needs to continue its historically accommodative policy stance.

While the policy was adopted to deal with the uncertainty of the Covid-19 crisis, continued economic gains and progress in fighting the pandemic through vaccines makes it “difficult to understand how policy is properly calibrated now,” wrote Bob Miller, head of Americas fundamental fixed income at asset management giant BlackRock. “The same emergency stance remains despite the absence of emergency conditions.”

At the meeting, the Fed’s policymaking arm voted to keep short-term borrowing rates anchored near zero and to continue buying at least $120 billion in bonds each month.

The market will get plenty of notice before the committee makes any changes, the minutes said.

“A number of participants highlighted the importance of the Committee clearly communicating its assessment of progress toward its longer-run goals well in advance of the time when it could be judged substantial enough to warrant a change in the pace of asset purchases,” the summary said. “The timing of such communications would depend on the evolution of the economy and the pace of progress toward the Committee’s goals.”

In addition, the committee raised its outlook for economic growth and inflation ahead. The median outlook for GDP in 2021 went to 6.5%, a big upgrade from the 4.2% expectation in the December projections.

Officials also indicated that the unemployment rate could fall to 4.5% by the end of the year and inflation could run to 2.2%, slightly above the Fed’s traditional 2% target.

Though inflation shows up 64 times in the minutes, Fed officials indicated little concern that it might become a problem anytime soon. One notion in the minutes said that inflation forecasts were right around where FOMC members expected.

During a meeting with the media a few hours before the minutes were released, Chicago Fed President Charles Evans said it would take “months and months” of higher inflation “before I’m even going to have an opinion on whether this is sustainable or not.”

Heading into the March FOMC meeting, some market experts had been expecting the Fed might at least alter the duration of the bonds it has been buying to tamp down a sharp rise this year in longer-dated Treasury yields.

However, Chairman Jerome Powell and other central bank leaders have said they view the rise in rates as a reflection of stronger growth expectations rather than uncomfortable inflation pressure.

Read the original article from CNBC.

ThinkCivics Newswire

ThinkCivics researches, examines, and reports on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption.

thinkcivics.com

Related Posts

The Sinister Roots of Build Back Better

The Sinister Roots of Build Back Better

May 26, 2022
Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

May 24, 2022

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

May 23, 2022

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

May 23, 2022
Load More
Next Post
Fed’s Brainard says the economy is improving but is still ‘far from’ where it needs to be

Fed's Brainard says the economy is improving but is still 'far from' where it needs to be

U.S. confident vast majority of developed nations will agree to global minimum tax, Treasury deputy says

U.S. confident vast majority of developed nations will agree to global minimum tax, Treasury deputy says

The Death of Courage

The Death of Courage

TODAY'S TOP STORIES

  • Here’s a Three-Word Policy That’s Been Effective in Stopping School Shootings

    Here’s a Three-Word Policy That’s Been Effective in Stopping School Shootings

    0 shares
    Share 0 Tweet 0
  • Unvaccinated People Will Be Barred From This, Starting May 31

    0 shares
    Share 0 Tweet 0
  • Reporter Shuts Down Blue Checkmark Leftist ‘Hack’ Distorting His Coverage of Texas School Shooting

    0 shares
    Share 0 Tweet 0
  • FBI Agent at Sussmann Trial Just Dropped a Bomb About an Ongoing Investigation

    0 shares
    Share 0 Tweet 0
  • Watch As Nancy Pelosi Has Meltdown During Live Interview To Roe v. Wade Question

    0 shares
    Share 0 Tweet 0

Newly obtained memo shows John Kerry was conducting ‘secret’ meetings with Iran during the Trump administration

by ThinkCivics Newswire
May 26, 2022
0
Newly obtained memo shows John Kerry was conducting ‘secret’ meetings with Iran during the Trump administration
National Security

This article was originally published on Twitchy.com. Read the original article.

Read more

Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation

by The Federalist
May 19, 2022
0
Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation
National Security

Hillary Clinton’s campaign lawyer Michael Sussmann is currently on trial for lying to the FBI about his role in pushing...

Read more

Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST

by ThinkCivics Newswire
May 19, 2022
0
Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST
National Security

The Department of Homeland Security (DHS) hired the co-author of the PATRIOT Act, arguably the harshest crackdown on civil liberties...

Read more

MSNBC Guests Want GOP Labeled ‘Domestic Terror Party,’ Jail Time For Having The Wrong Opinions

by The Political Insider
May 19, 2022
0
MSNBC Guests Want GOP Labeled ‘Domestic Terror Party,’ Jail Time For Having The Wrong Opinions
National Security

We all know that Democrats and the left love to operate on the premise of “never let a good crisis...

Read more
The Sinister Roots of Build Back Better
Economy

The Sinister Roots of Build Back Better

by American Thinker
May 26, 2022
0

President Joe Biden and the puppeteers who control his teleprompter are weakening the country in order to gain more power...

Read more
Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States
Economy

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

by Zero Hedge
May 24, 2022
0

As World Economic Forum head Klaus Schwab proclaimed that “the future is built by us” at the opening of the...

Read more
This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect
Economy

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

by RedState
May 23, 2022
0

It’s the time of year again when thousands of the world’s most powerful and wealthy people gather in Davos, Switzerland...

Read more
Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won
Economy

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

by The Political Insider
May 23, 2022
0

President Trump is many things, to friend and foe alike. Is being a modern day Nostradamus among them? At least...

Read more
Facebook Twitter RSS

Brilliantly

SAFE!

thinkcivics.com

Content & Links

Verified by Sur.ly

2022

Recent News

  • Newly obtained memo shows John Kerry was conducting ‘secret’ meetings with Iran during the Trump administration
  • The Sinister Roots of Build Back Better
  • Watch: Why a Gun-Free America Is an Impossibility

Category

  • Culture & Society
  • Economy
  • Editorials
  • Education
  • Elections
  • Energy
  • Environment
  • Faith
  • Health
  • Immigration
  • Military
  • National Security
  • Politics
  • Science & Tech
  • US News
  • Videos
  • World News

© 2022 ThinkCivics Media. All Rights Reserved.

  • Login
  • Sign Up
No Result
View All Result
  • Home
  • About
  • Store
  • Contact Us
  • Join
  • Contribute

© 2022 ThinkCivics Media. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.