“Tapering soon” while maintaining the zero interest rate policy
A view of the Federal Reserve System in Washington, DC. New York Shinhwa=Yonhap News
The U.S. central bank, the Federal Reserve (Fed), said on the 22nd (local time) that it could begin tapering its asset purchases soon. It is a flow in which the tapering start signal becomes clearer. Although the policy of ‘zero interest rate’ was maintained, it also hinted that if the timing of an interest rate hike is early, it may be accelerated to next year. In a statement after the Federal Open Market Committee (FOMC) meeting, the Fed said, “If progress continues as broadly as expected, the committee believes that a slowdown in the pace of asset purchases will soon be justified.”
The Fed has been working to curb long-term interest rates since last year’s COVID-19 crisis. It’s buying $120 billion of bonds every month, which means it could start reducing its asset purchases sooner or later. With the US consumer price inflation more than double the Fed’s target of 2% and inflationary pressures rising, the demand for tapering is also rising.
The U.S. central bank, the Federal Reserve (Fed), said on the 22nd (local time) that it could begin tapering its asset purchases soon. It is a flow in which the tapering start signal becomes clearer. Although the policy of ‘zero interest rate’ was maintained, it also hinted that if the timing of an interest rate hike is early, it may be accelerated to next year. In a statement after the Federal Open Market Committee (FOMC) meeting, the Fed said, “If progress continues as broadly as expected, the committee believes that a slowdown in the pace of asset purchases will soon be justified.”
The Fed has been working to curb long-term interest rates since last year’s COVID-19 crisis. It’s buying $120 billion of bonds every month, which means it could start reducing its asset purchases sooner or later. With the US consumer price inflation more than double the Fed’s target of 2% and inflationary pressures rising, the demand for tapering is also rising.
The base rate was frozen at the current 0.00-0.25%. According to the unanimous decision of the FOMC members, the interest rate has been fixed at zero for a year and a half since March of last year. The Fed also presented the possibility of a rate hike in 2022 in a separate dot plot. In this dot chart, 9 out of 18 members predicted an interest rate hike next year.
The Bank of Korea held a ‘situation review meeting’ presided over by Vice President Seung-heon Lee on the 23rd to check the impact of the US FOMC meeting results, etc.
Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
Bunch O Balloons Multi-Colored (10 Bunches) by ZURU, 350+ Rapid-Filling Self-Sealing Instant Water Balloons for Outdoor Family, Children Summer Fun - Total (100 Balloons) Colors May Vary
$14.84 (as of July 26, 2024 21:29 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Woodstock Wind Chimes Zenergy Solo Hand Chime, Silver (7") Musically Tuned for Meditation, Yoga and Mindfulness, Bell Percussion Instrument For Teachers and Classrooms
$12.99 (as of July 26, 2024 21:31 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
MontNorth Collapsible Basin Bucket,9L Collapsible Dishpan with Drain Plug for Kitchen Sink,5L Portable Foldable Small Plastic Water Supplies for Outdoor Garden Camping Fishing Car Wash(Sets of 2)
$16.99 (as of July 26, 2024 21:31 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Ekouaer Pajamas Set for Women 2 Piece Sleepwear Short Sleeve Top and Shorts Soft V Neck Pjs Lounge Set with Pockets S-XXL
$19.99 (as of July 26, 2024 21:29 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
