Fed Is Committed to Easy Money Until Recovery Is Much Further Along

fed is committed to easy money until recovery is much further along

Federal Reserve Chairman Jerome Powell.

Susan Walsh-Pool/Getty Images

Technology stocks pared steep early losses Tuesday as Federal Reserve Chairman Jerome Powell  reiterated the central bank’s promise to keep interest rates near zero and maintain its bond-buying program until the U.S. economy improves. 

In the Fed’s semiannual monetary policy report to Congress, Powell said that “the economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.” He pointed to hefty unemployment rates among lower-income workers as a particular concern.

Most of the views in his speech echo prior comments from Powell at panels and in news conferences. 

Nevertheless, an early-session selloff in technology stocks moderated after his comments, with the Nasdaq Composite down 2% at 11:45 a.m. It had declined as much as 3.9% in morning trading.  Long-term Treasury yields were flat as Powell answered questions from Congress, paring a mild advance that occurred during his speech. 

In his prepared comments, Powell said that officials believe rates should remain near zero “until labor market conditions have reached levels consistent with the committee’s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time…

Want to know more click here go to source.

From -
Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages

Site Language

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.