The Federal Reserve reorganized its minds a US economic restructuring, but kept interest rates close to zero and did not show any movement to end financial aid.
At the end of the two-day conference, officials saw a change in the labor market and presented a brighter picture than they had in March.
“In the midst of vaccination and intensive care, the economic and operational indicators have been strengthened. The areas most affected by the epidemic are still weak but have shown improvement, “the Federal Open Market Committee said.
The Fed went on to say that the economic system “will depend heavily on HIV” and that public health problems have brought “risks” to the economy. However, in March, the largest bank in the United States described the risks of the epidemic asgreat”- a statement he removed Wednesday.
Money kept its simple rules. It had a federal interest rate, its highest interest rate, between 0 and 0.25% and is said to continue to buy $ 120bn a month.
The fund has set limits on how to start reducing consumer spending, arguing that “significant improvements” should be made in achieving its objectives in terms of performance and inflation of 2% over time. The U.S. stock market still has 8.4m more jobs than the pre-epidemic population, with prices falling expected to wake up in the coming months, Fed officials do not expect it to continue.
In a statement Wednesday, the central bank acknowledged that inflation had risen, but also said that this “mainly” indicates “temporary conditions”.
At a press conference following the release of the statement, Jay Powell, chairman of the Fed, said it was too early to start a discussion on buying goods. “Economic activity and job creation have just started in the winter, and it will take some time for us to see significant progress.”
US stocks rose as Powell spoke, indicating that the S&P 500 previously lost was up 0.3%. Old Economy benefited again, sending yields down. The yield on the 10-year-old Treasury financial position was around 1.61%, selling more than 1.65% before the press conference.
Despite pressure from Fed officials to take a “patient” approach if they decide to change their policies, investors have begun to speculate that the central bank may be forced to start cutting back on their aid.
The future of the Eurodollar, a slightly lower interest rate, predicts that the Currency will raise prices as early as 2023, almost a year earlier than the recent bank demonstrations, which were published in March.
Some investors in the market believe the Fed could begin negotiations to buy their assets in early June, while others expect it to continue until the end of this year.
“[Fed] The process is self-explanatory at the moment, because it is not until October, November, December that you start to get the most out of your free price and keep abreast of developments, “said Jason Thomas, Carlyle Group’s global research director.