The Federal Reserve (Fed) from USA announced on Wednesday that it will begin to reduce its asset purchase program this month, eliminating a first pillar of the expansionary emergency monetary policy introduced in March 2020 to protect the economy from the pandemic of the COVID-19. The following is a guide to why and how the […]
Tag: Fed
Fed will begin to reduce monetary stimulus from November
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 […]
Fed announces reduction in bond purchases and insists inflation is “transitory”
Updated on 11/03/2021 02:45 pm The Federal Reserve (Fed) announced that it will start cutting its monthly bond purchases in November with plans to finish them in 2022, but maintained its view that high inflation will be “transitory” and probably will not require a rapid rise in interest rates. However, the central bank noted that […]
Investors look to the future and prepare for Fed rate hikes
While the Reserva Federal (Fed) from USA prepares to reduce its huge asset purchases, investors In the bond market, they are analyzing the way ahead, looking for signs of how effectively the central bank can tighten its monetary policy to cope with persistent inflation. At their meeting this week, policymakers are expected to give the […]
Biden Says He Will Announce Fed Appointments “Very Soon”
Updated on 02/11/2021 04:05 pm President Joe Biden said the White House will make an announcement on appointments to lead the United States Federal Reserve (Fed) “soon”. He noted that he has been thinking about personnel decisions, including the possibility of reappointing the current president of the Fed, Jerome Powell, and that he hoped there […]
Fed could announce the reduction of its bond purchase plan tomorrow
Updated on 02/11/2021 02:15 pm The Federal Reserve (Fed) of the United States started its two-day meeting on Tuesday after which it is expected to announce the beginning of the reduction of its multimillion-dollar monthly bond purchase program amid the economic recovery and the persistent rise in prices . The US central bank will report […]
Three reasons why inflation is not permanent
Por Tyler Cowen With inflation reports so high, it is increasingly difficult to defend my membership in the “Transitional Equipment”. However, I still believe that the rise in inflation is in fact transitory: after a few years of above-average price inflation, prices will return to a steady state of growth of around 2% per annum, […]
Fed faces a contest between supply, demand and “patience”
The authorities of the Federal Reserve (Fed) face a test of their ability to ignore high inflation and are now navigating their own feelings of patience and risk, amid a US economy contained by problems in supply chains, slow hiring and strong consumer demand. The combination of supply bottlenecks and rising household incomes, driven by […]
Markets are betting that rates will rise earlier than expected
The investors bets are increasing that the world’s major central banks will raise their interest rates ahead of schedule, and faster than they’d like. According to a Bloomberg index, global bonds are heading for their worst year since 2005, with traders forecasting rate hikes to come in all developed economies. This is because they believe […]
Fed’s Powell Says Time to Cut Asset Purchases, But Not to Raise Rates
Federal Reserve (Fed) Chairman Jerome Powell said the United States central bank should start reducing its asset purchases soon, but should not raise interest rates yet because employment is still very low and Inflation will ease next year as COVID-19 pressures ease. “I think it’s time to cut back on bond purchases; I don’t think […]