Central bank chief: Will not wait until the Fed is considering changing its monetary policy
According to Federal Reserve Chairman Jerome Powell, the US economy, which has been hard hit by the corona pandemic, will still depend on the help of the monetary authorities for a long time. The economic recovery is still “inconsistent and far from over,” said Powell on Tuesday at his six-month hearing in the US Senate Banking Committee.
It will be some time before the Federal Reserve will consider changing its monetary policy to help the country get back to full employment.
The interest rate cuts and bond purchases, which currently total $ 120 billion a month, “have eased funding conditions considerably and are providing substantial support to the economy,” Powell said. It is his first appearance in the US Congress since the Democratic election victory, which gave them control of both houses of the House. “The economy is still a long way from our full employment and inflation targets and it will likely take some time to make further significant progress,” he added.
The central bank recently signaled that it would only reduce its bond purchases when conditions on the job market and inflation improve radically. The last unemployment rate was 6.3 percent. More than half a million people have now died in connection with corona infection in the United States.