69 days ago • Posted by William Ramstein
Economic recovery hopes; fed commits to buying up.
Federal Open Market Committee said it would buy $120bn of debt per month until they reach their price stability and maximum employment mandate. The vaccine hopes is not enough to save the economy, some say the economy needs further support. With rates said to remain low until 2023, the fed was firmly bullish with regards to economic recovery by the second half of the next year. Monetary policy (buying up more assets) comes with a lag Powell said, and that besides, financial conditions are already healthy. He suggested fiscal policy (packages) would be more suited to support the short term economy. surce: FT