[ad_1]
Federal Reserve officials strongly debated last month over whether the US economic recovery could be strong enough for the central bank to resume its long-term recovery from the epidemic more than expected.
Minutes from the June meeting of the Federal Open Market Committee meeting released Wednesday show two camps arguing over whether the economy is about to scrap its $ 120bn procurement program.
The controversy is expected to happen again in the coming months.
Fed officials also said that “buying” purchases could start sooner than expected depending on the current economic situation, driven by a fast-moving U.S. vaccine, but conditions were yet to come.
“What the committee did” going forward “is often seen as unfulfilled, even by those who hope to do so,” he said.
“Various students have indicated that they expect the start of a decline in consumer spending to be earlier than expected at previous meetings in light of the coming information.”
Some officials warned, however, by reading more of the available, given the quirks that may be available at the opening. More in the coming months could provide an opportunity to “illuminate the labor market and inflation”, he said.
The committee generally agreed that “as a strategic plan, it was important to have a good environment in place to reduce the sale of goods, if necessary, in response to unforeseen economic developments”.
The fund decided to raise interest rates to zero, but regulators say they have raised prices by 2023, in early March. Those ideas, in a document known as the “dot plot”, were discussed at a meeting.
According to the minutes, “few” officials said they expected the economy to be ready for interest rates to rise “slightly” more than they had anticipated, but some backtracked.
“Several students have confirmed… Financial uncertainty has been raised,” he said in the minutes, “and it shows a great deal of uncertainty about the proper federation federal rate.”
Some Fed officials have also warned that because of market concerns over interest rates “it is important to ensure that the committee’s actions or commitment to its rules do not change”.
The fund has said it will only increase interest rates once all the work has been completed and inflation has reached 2% and is in the process of moving forward over time.
Some advertisers have interpreted the new interest rates as an indication that the Fund is more likely to respond to the financial crisis than expected, and to hold a major conference on U.S. government prices since the conference. Yields over the 10-year period fell Wednesday to 1.3%, the lowest in four months.
The 30-year-old long-term bond stabilized at about 1.93% after the release of the pair, well above the 2.3% level seen in early June.
Fed officials also discussed last month how the central bank could reduce its purchasing power, when they saw fit. A growing group of executives have publicly expressed their preference to end the purchase of credit unions sooner than the Treasury bond buys, an idea that has been confirmed at the time.
“Several participants benefited from reducing the pace of this faster or earlier than the Treasury did in terms of market pressures in the domestic markets,” he said.
Not all adults agree with this.
“Several other students, however, said the slowdown in the Treasury and MBS transactions was justified because the system would be more closely aligned with the committee’s initial communication or because the purchase of Treasury shares and MBS both provided financial support,” he said.
[ad_2]
Source link
