Investing.com – The Fed kept the Federal Reserve rate steady between 0.00% and 0.25% as it continues to want to support the US economy’s recovery from the Corona virus. The Fed also continued its $120 billion monthly bond-buying program.
Before the decision, it fell to $1,799.49 an ounce. The American set 92,517 records.
122 points down.
“This is supposed to be a meeting where the entire focus of the Fed is on monetary tightening,” said Mark Cabana, head of US short-term rate strategy at Bank of America. “Our view is that the market will eventually listen to the dove tone of Federal Reserve Chairman Jerome Powell.”
The market is waiting for the Central Bank Governor’s statement.
The Fed sees in its published economic forecasts that the US economy continues to recover despite fears of the epidemic.
After the report was announced, the gold price fell strongly.
The Fed believes that sectors strongly affected by the pandemic are recovering, but not fully recovered. The Fed also pointed to the rise in inflation, which reflects temporary factors. The Fed adds: “Financial conditions remain soft, reflecting the Fed’s policy to support the economy and cash flow to homes and businesses.”
As for the economic outlook, the Federal Reserve maintained its positive expectations of the highest growth rate the economy has witnessed since World War II. The US market awaits GDP data tomorrow.
The Federal Reserve is currently facing concerns about high inflation as consumer prices hit the highest levels since the global financial crisis in 2008. However, Fed officials stress that the rise in inflation will decrease once supply chains are released from pressure and demand returns. normal levels for some commodities, especially used cars.
“Last December, the committee stated that it will increase its holdings by at least $80 billion per month and purchase at least $40 billion in mortgage-backed securities. The program will continue until the economy reaches its goals of full employment and price stability.” Since then, the economy has made progress towards these goals, and the committee is still evaluating this progress at future meetings.
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