The Federal Reserve (Fed) from USA announced, this Wednesday, November 3, that it will begin to reduce its asset purchase program in view of the “progress” of the economy in US $ 15,000 million per month, which is the beginning of the gradual withdrawal of the monetary stimulus deployed to support the economy in the face of the crisis caused by the pandemic of COVID-19.
The Fed’s Monetary Committee (FOMC) considered that “similar reductions” will occur each month “if justified by the evolution of the economic outlook,” according to a statement issued at the end of their meeting.
Regarding inflation, which closed September with an interannual rate of 5.4%, the highest in 13 years in the country, the US central bank acknowledged in the statement that it is “high”, but insisted that it responds largely “to factors that are expected to be transitory ”.
In this way, if the consumer price index is too high, the reduction of these purchases will be greater, before starting to increase the reference rates, as a way of curbing the rise in prices. The agency therefore kept its interest rate in a range of 0 to 0.25%.
The leaders of the Fed stressed that “inflation is high and mainly reflects factors that should be temporary.”
“The imbalances of supply and demand due to the pandemic and the reopening of the economy they contributed to important price increases in some sectors ”, they summarized.
With information from EFE and AFP.
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