Reconfirmation of monetary policy promotion target for long-term 2% inflation
The U.S. Fed unanimously decided to freeze the interest rate, and predicted that the current level of zero interest rate will be maintained until 2023. The Fed has reaffirmed its existing position that it will adjust its monetary policy with the aim of achieving 2% inflation in the long term.
The Federal Reserve System (Fed, Fed), the central bank of the United States, issued a statement after a regular meeting of the Federal Open Market Committee (FOMC) on the 17th (local time) and announced that it will freeze the base rate at the current 0.00~0.25%.
The FOMC members unanimously agreed to the freeze of interest rates, and the Fed presented the prospect of maintaining the zero interest rate level until 2023 in a dot chart showing the interest rate outlook of the FOMC members.
The Fed said it promised to use a full range of tools to promote maximum employment and price stabilization goals by supporting the US economy in difficult times.
Corona 19 epidemic is causing tremendous human and economic difficulties in the United States and around the world, and the ongoing public health crisis continues to burden economic activity, employment, and inflation, and poses a significant risk to economic outlook. did.
The FOMC reaffirmed its willingness to achieve maximum employment and inflation at a rate of 2% in the long run, seeing inflation as continuing to fall below 2%.
It also announced that it will continue to increase its holdings in US Treasury bonds by at least $80 billion per month and by at least $40 billion per month in institutional mortgage-backed securities until significant progress is made in achieving these goals.
Meanwhile, the Fed predicted this year’s economic growth rate to be 6.5%, exceeding the forecast of 4.2% in December last year. In addition, it was predicted that this year’s inflation rate would exceed the target of 2% and reach 2.4%, but next year this figure is expected to fall back to around 2%.
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