Amid market expectations the Fed may be forced to tighten monetary policy sooner than expected, top U.S. central bankers delivered a simple message to investors fixated on rising U.S. bond yields and price risks: Do not expect any changes until the economy is clearly improving.
Amid market expectations the Fed may be forced to tighten monetary policy sooner than expected, top U.S. central bankers delivered a simple message to investors fixated on rising U.S. bond yields and price risks: Do not expect any changes until the economy is clearly improving.
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FILE PHOTO: Federal Reserve Vice Chair Richard Clarida reacts as he holds his phone during the three-day Challenges for Monetary Policy conference in Jackson Hole, Wyoming, U.S., August 23, 2019. REUTERS/Jonathan Crosby
(Reuters) - Despite “very near-term” downside risks to the U.S. economy from the spread of COVID-19 and emergence of new variants, effective vaccines and fiscal relief passed late last year have set the table for stronger growth, Federal Reserve Vice Chair Richard Clarida said on Wednesday.
“Prospects for the economy in 2021 and beyond have brightened and the downside risk to the outlook has diminished,” Clarida said in remarks prepared for delivery to the U.S. Chamber of Commerce.
The Federal Reserve says its Fedwire Funds, Fedcash and some check clearing services have resumed normal operations after a more than three-hour disruption to more than a dozen critical central bank payment services forming the backbone of the U.S. banking system.