{"id":113112,"date":"2021-04-28T20:36:51","date_gmt":"2021-04-28T20:36:51","guid":{"rendered":"https:\/\/fin2me.com\/?p=113112"},"modified":"2021-04-28T20:36:51","modified_gmt":"2021-04-28T20:36:51","slug":"fed-stays-the-course-nods-to-strengthened-u-s-recovery","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/fed-stays-the-course-nods-to-strengthened-u-s-recovery\/","title":{"rendered":"Fed stays the course, nods to 'strengthened' U.S. recovery"},"content":{"rendered":"

WASHINGTON (Reuters) – The Federal Reserve held interest rates and its monthly bond-buying program steady on Wednesday, nodding to the U.S. economy\u2019s growing strength but giving no sign it was ready to reduce its support for the recovery.<\/p>

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS\/Chris Wattie<\/figcaption>

\u201cAmid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,\u201d the U.S. central bank said in a unanimous policy statement at the end of a two-day meeting.<\/p>\n

Nevertheless, \u201cthe path of the economy will depend significantly on the course of the virus, including progress on vaccinations,\u201d the Fed said. \u201cThe ongoing public health crisis continues to weigh on the economy and risks to the economic outlook remain.\u201d<\/p>\n

The language about the coronavirus reflected a slightly less negative view than the Fed\u2019s description in March, when it said the health crisis \u201cposes considerable risks to the economic outlook,\u201d and analysts took note.<\/p>\n

Coupled with the strong language on the economy, analysts said that suggested at least a small step by the Fed towards the beginnings of a discussion about when to wean the U.S. economy from crisis-era programs.<\/p>\n

\u201cIt is very much tiptoeing in the direction of a stronger economic backdrop that could potentially justify tapering and eventual rate increases,\u201d said Steven Violin, portfolio manager for F.L.Putnam Investment Management Company in Wellesley, Massachusetts.<\/p>\n

Yet despite the evidence of improvement, the Fed on Wednesday left unchanged the list of conditions, first set in December, that must be met before it considers pulling back from the emergency support put in place to stem the economic fallout of the pandemic in 2020.<\/p>\n

Related Coverage<\/p>\n<\/p>\n

That includes \u201csubstantial further progress\u201d towards its inflation and employment goals before stepping back from its monthly bond purchases.<\/p>\n

\u201cIt is not time yet,\u201d to begin discussing any change in policy, Fed Chair Jerome Powell said in a news briefing after the release of the statement, repeating his assessment that the economy was still a long way from a return to full employment.<\/p>\n

MONTHS DOWN THE ROAD<\/h2>\n

Investors and analysts had expected this week\u2019s Fed meeting would see little if any change to the policy statement, and the initial reaction in financial markets was muted.<\/p>\n

The benchmark S&P 500 index was around the unchanged mark on the day, and yields on longer-dated U.S. Treasury securities remained modestly higher. The dollar weakened fractionally against a basket of key trading partner currencies.<\/p>\n

U.S. job growth has been accelerating and the Fed expects inflation to rise to its 2% target over time, eventually allowing it to trim its $120 billion in monthly bond purchases and raise its target overnight interest rate from the current level near zero.<\/p>\n

But even that first step of tapering bond purchases is likely months down the road, and the Fed gave no indication in Wednesday\u2019s statement that there is any rush.<\/p>\n

The economy remains more than 8 million jobs short of where it was before the pandemic forced whole industries to shut down in an effort to control the spread of the virus.<\/p>\n

The expansion of the COVID-19 vaccination program has contributed to expectations for fast economic growth this year, though the Fed acknowledged that the economy\u2019s prospects will be contingent on continued progress in managing the pandemic.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

WASHINGTON (Reuters) – The Federal Reserve held interest rates and its monthly bond-buying program steady on Wednesday, nodding to the U.S. economy\u2019s growing strength but […]<\/p>\n","protected":false},"author":3,"featured_media":113111,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nFed stays the course, nods to 'strengthened' U.S. recovery - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/fed-stays-the-course-nods-to-strengthened-u-s-recovery\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed stays the course, nods to 'strengthened' U.S. recovery - Fin2me\" \/>\n<meta property=\"og:description\" content=\"WASHINGTON (Reuters) – The Federal Reserve held interest rates and its monthly bond-buying program steady on Wednesday, nodding to the U.S. economy\u2019s growing strength but [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/fed-stays-the-course-nods-to-strengthened-u-s-recovery\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-28T20:36:51+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/04\/Fed-stays-the-course-nods-to-strengthened-U.S.-recovery.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/fed-stays-the-course-nods-to-strengthened-u-s-recovery\/\",\"url\":\"https:\/\/fin2me.com\/markets\/fed-stays-the-course-nods-to-strengthened-u-s-recovery\/\",\"name\":\"Fed stays the course, nods to 'strengthened' U.S. recovery - 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