Federal Reserve Board Chair Jerome Powell said Thursday that the United States is far from a strong job market, suggesting that the central bank’s easy-money policy will continue for the foreseeable future.
Friday’s U.S. employment report, which showed the U.S. lost 140,000 salary positions in December, has kept the central bank away from the target, but authorities and many private economists have said that the Covid-19 vaccine is national. The economy is expected to recover this year as it will be distributed throughout. This month’s Wall Street Journal forecaster survey predicts that the US economy will grow 4.3% this year and unemployment will fall from 6.7% in December to 5.3% by the end of this year.
“It’s not time to talk about withdrawing from monetary easing,” Powell said in a webcast with his undergraduate school, Princeton University, adding that “the economy is far from our goals.” It was. In addition to the high unemployment rate, inflation may rise further this year, but he said he is not clearly on the road to sustainably reaching 2%.
The Federal Reserve Board has shown that it has pushed short-term interest rates to near zero and hopes to keep them there for years. We have also purchased $ 80 billion in Treasury bills and $ 40 billion in mortgage bonds each month since June, promising to continue until the job market “makes significant progress.”
The central bank’s next policy meeting will be January 26-27, with little change in policy or communication expected.
The job market has a long recovery ahead, says Federal Reserve Board Powell.
Source link The job market has a long recovery ahead, says Federal Reserve Board Powell.