Federal Reserve Chairman Jerome Powell says “No one should be complacent” about the US recovery
The Federal Reserve is stronger than expected growth before this year, as vaccination rollout continues and government stimulus efforts begin to affect it.
The US Central Bank forecasts growth of around 6.5% this year, an increase of 4.2% from its first forecast in December.
The Fed also confirmed a positive outlook for the job market on Wednesday.
However, central banks opposed the interest rate hike, with most members hoping to bring borrowing costs closer to zero until 2023 and beyond.
Federal Reserve Chairman Jerome Powell said he would like to see a more complete recovery before changing policies aimed at stimulating the economy.
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Jerome Powell said “no one should blame” on the US recovery.
Olivier Konzeoue, Forex Sales Trader at SAXO Markets, commented on the Fed, which maintains its zero-rate outlook.
“The cautious Fed has decided to keep prices closer to zero and maintain monthly asset purchases at $120 billion, but upgraded its economic outlook and 7 out of 18 in 2023 Feds Officials saw the rate hike and brought about a change in the dot plot,” Konsouye said.
“Therefore, the Fed believes it is important to maintain the financial position of accommodation and is pleased to see inflation heat up for some time, in order to return to full employment by 2023. .”
Powell described an increase above the 2% target as “temporary,” saying such increases did not meet the criteria needed for monetary policy change.
Connor Campbell, financial analyst at Spreadex, commented on the chairman’s remarks.
“In other words, even if four members of FOMC were seeking a hike in 2022 and seven in 2023, interest rate increases will be off the table until at least 2024.”
The Dow responded accordingly, closing a height of nearly 190 points to step into the 33,000 for the first time in its history.
EU regulators are set to announce a decision on the safety of the Astrazeneca vaccine, and in the aftermath of the Fed’s decision, the automakers have easily surpassed their colleagues. A 1% rise, the German index exceeded 14,740 for the first time. In contrast, CAC added 0.1%, leaving it at its 13-month peak.
