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Powell: 'Fed to initiate reduction in asset purchases within the year'

2021-08-27T18:11:29.603Z

"It is appropriate to start the process of reducing asset purchases this year." This was stated by the president of the Fed, Jerome Powell, in Jackson Hole (ANSA)



The Fed will initiate curtailment of bond purchases by 2021

.

The announcement came at the Jackson Hole bankers summit by US central bank governor Jerome Powell, who called the start of the asset purchase cutback process "appropriate" this year.

"It is appropriate to start the process of reducing asset purchases this year." Powell said, adding that however "it is not a direct sign of a near hike in interest rates." Speaking of the pandemic, Powell noted that "it remains a threat to growth and the Delta variant creates short-term risks." The president of the Federal Reserve explained that the American economy has made "clear progress" but "weaknesses" remain in the labor market: in this context, an untimely and untimely move in monetary policy could slow down economic activity. " reiterated that the jump in prices is temporary and that inflation will return to the 2% target.

We said we would continue asset purchases at current speed until further substantial progress towards the goals of maximum employment and price stability. I believe that this progress has been made for inflation. There is also clear progress towards maximum employment. If the economy evolves as expected, it will be appropriate to start reducing the speed of asset purchases this year, "says Powell. The Fed currently buys $ 120 billion of assets a month." The timing and speed of the reduction in assets. asset purchases are not intended as a direct signal on the timing of an interest rate hike. "



Source: ansa

All life articles on 2021-08-27

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