Economists at Wells Fargo Securities believed that the U.S. labor market would need to strengthen significantly before the Fed starts to publicly contemplate a tapering of asset purchases.
The U.S. Federal Reserve is expected to maintain its ultra-loose monetary policy as the economic recovery remains far from complete, analysts said.
We expect the Fed to maintain its policy rate between a range of zero and 0.25%, with no changes to the central bank s forward guidance with respect to asset purchases, following a two-day policy meeting that will end on Wednesday, said Joseph Brusuelas, chief economist at accounting and consulting firm RSM US LLP.
U S Fed to maintain ultra-loose policy as economic recovery far from complete ecns.cn - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ecns.cn Daily Mail and Mail on Sunday newspapers.
No bubble in housing market, Fed s Powell says americanbanker.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from americanbanker.com Daily Mail and Mail on Sunday newspapers.
ANALYSIS/OPINION:
Is inflation about to make a political comeback? While there has been debate over whether overheating could be an economic threat, people are ignoring inflation’s equally serious and in current circumstances, faster political impact. Inflation could light the fuse on a political powder keg stuffed full by a year of unprecedented chaos.
There has been increasing conversation among policymakers and pundits as to whether inflation concerns are legitimate. Biden officials have dismissed this, or at least discounted it relative to the danger of not doing enough for a recovering economy. Similarly, Federal Reserve Chairman Jerome Powell has defended the central bank’s aggressive actions.