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Federal Reserve Board announces determination to address inflation risk | WGN Radio 720

File – Federal Reserve Chairman Jerome Powell testifies at a hearing of the Home Finance Services Commission on Thursday, September 30, 2021 at Capitol Hill, Washington. In discussions earlier this month, the Federal Reserve said it “doesn’t hesitate” to take appropriate action to deal with inflationary pressures that have pose a risk to the economy. In minutes released on Wednesday, November 24, at the Federal Reserve’s November 2-3 meeting, the Federal Reserve acknowledged that inflation was higher than expected this year. He argued that the inflation surge seen was likely to remain temporary. (Pool, file via Sarah Silbiger / AP)

Washington (AP) —In a discussion earlier this month, the Federal Reserve said it “doesn’t hesitate” to take appropriate action to deal with inflationary pressures that have pose a risk to the economy.

Inflation seen this year, admitting that inflation was higher than expected, in minutes released on Wednesday of the Federal Reserve’s November 2-3 meeting. He argued that the surge was still likely to be temporary.

The minutes take the first step for the Federal Reserve to roll back the massive support it provided to the recession-driven economy last year after a widespread blockade to contain the COVID virus. Covered the resolved meeting.

At its November meeting, the federal government approved a reduction in the amount of government bonds and mortgage-backed securities it had purchased to put downward pressure on long-term interest rates.

The Commission approved a $ 15 billion reduction in November and an additional $ 15 billion reduction in monthly purchases of government bonds and mortgage-backed securities of $ 120 billion in December. These monthly cuts were expected to continue until the bond purchase program was phased out in mid-next year.

Inflation in recent months has reached levels not seen in decades. Federal Reserve Chair Jerome Powell and other Federal Reserve officials said that price pressures will be temporary and disappear once problems such as supply chain bottlenecks are resolved. Claims likely.

However, the Fed’s minutes show growing concern that unwanted price pressures may last longer, and the Fed is ready to move to reduce bond purchases more quickly. We need to start raising the Fed’s benchmark interest rates sooner to prevent inflation.

“Various participants will adjust the pace of asset purchases if inflation continues to rise above a level consistent with the Commission’s objectives, and the federal funds rate will be faster than participants currently expect. We need to be prepared to raise our target range, “said the minutes. ..

In the spring of 2020, the Fed’s policy rate was cut from a record low of 0% to 0.25% as the Federal Reserve’s efforts to prevent the COVID recession from being involved in a more serious recession. ..

The Federal Reserve will then meet December 14-15, with some private economists more strongly about the Federal Reserve’s intention for central banks to deal with the surge in economic inflation. He said he might decide to send a signal.

Federal Reserve Board announces determination to address inflation risk | WGN Radio 720

Source link Federal Reserve Board announces determination to address inflation risk | WGN Radio 720

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