The Federal Reserve said the widening Covid-19 vaccination program has helped the U.S. economy stage a robust rebound, while pledging that monetary policy will continue to provide “powerful support." “Progress on vaccinations has led to a reopening of the economy and strong economic growth, supported by accommodative monetary and fiscal policy," the central bank said Friday in its semiannual Monetary Policy Report to Congress. Policy makers have also pledged to maintain asset purchases at a $120 billion monthly pace until “substantial further progress" had been made on employment and inflation. The Monetary Policy Report noted that Fed asset purchases and a pledge not to raise interest rates until it had achieved its inflation and employment goals “will help ensure that monetary policy continues to deliver powerful support to the economy until the recovery is complete." Expectations taken from surveys show a similar pattern as market-based measures, the Fed said, with higher near-term inflation settling back toward the Fed target.

Source: Mint July 09, 2021 16:41 UTC