Some Federal Reserve officials have said the central bank in the US should create a solution for some of them great financial support to wealth as recovery progresses.
According to a report at a meeting of the Federal Open Market Committee in late April, government officials said the US economy was far from its two goals of full functioning and price stability, and still wanted the money to be stable. But several said the time could come soon this year for the Fed to change its stance.
“Many of the participants said that if the economy continues to make rapid progress towards the goals of the committee, it may be necessary at some point in the next meetings to discuss the process of transformation,” he said.
The Fed, led by Jay Powell, is currently buying $ 120bn of Treasury securities and lending institutions on a monthly basis, and has promised to continue until they see “significant progress” in its pursuit of rising prices and jobs.
The minutes reaffirmed the central bank’s commitment to tackling any changes in the law with caution – pointing to a clever move from former Federal Chairman Ben Bernanke in 2013, whose withdrawal talks sparked an uproar that sparked international economic crisis.
“Many stakeholders have highlighted the need for a committee that clearly outlines how it is going to achieve its long-term goals ahead of time when it will be judged to be large enough to change the way purchases take place,” he said in minutes. “Such a period of communication will depend on economic transformation and the progress of the committee’s objectives.”
Sales in U.S. state-owned companies resumed Wednesday, sending off higher yields. The yield on the Treasury’s 10-year financial position was 0.05% compared to 1.69%.
Short-term bonds are also linked to sales, with two-year yields rising 0.02 to 0.35%. The five-year record jumped to about 0.05% to 0.86%.
“They do not publish this without realizing that this has consequences,” said Kathy Jones, chief financial officer at Charles Schwab. “This is a first impression, but it will come gradually. The whole language is required. They are leaving themselves unsettled. ”
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In late April the FOMC meeting was held ahead of a report on poor performance and reports of rising consumer prices raised concerns about job inequality. economic growth, difficult predictions of the US recovery from the epidemic.
Many economic policy makers in the US maintain an affordable approach. “Recurring economic growth” could lead to a rise in consumer prices to “slightly beyond” 2 percent, but “after the short-term impact of these events, participants often expect shortages in the future,” according to the minutes.
Looking ahead, the students expect that economic growth will be at the level of meeting the committee’s goals over time. “