-
Fed sees more optimism among US business, activity accelerating
Washington (AFP) - American businesses are feeling more optimistic as vaccinations against Covid-19 become common, and economic activity accelerated moderately in recent weeks, the Federal Reserve said on Wednesday in its survey of business conditions. However some areas are seeing prices rise, both as a consequence of supply chain snarls and increasing demand as consumers resume daily life with Covid-19 less of a threat, according to the central bank's beige book survey. In the period from late February to early April, economic activity increased to "a moderate pace," while "consumer spending...
AFP
-
Powell says US inflation may rise in 2021, but won't stay
Washington (AFP) - Federal Reserve Chair Jerome Powell on Tuesday acknowledged that the United States will see inflation rise this year, but the uptick in prices will not be substantial. Stock markets and some economists have grown nervous in recent weeks that the US economy's expected recovery this year as the Covid-19 pandemic recedes coupled with trillions of dollars in government stimulus could push prices upwards. Speaking to the House Financial Services committee, Powell acknowledged that scenario could indeed play out, but the price increase would likely be temporary. "We do expect that...
AFP
-
Fed more upbeat on US economy but will keep stimulus in place
Washington (AFP) - US central bankers are much more optimistic about the outlook for the American economy, as trillions of dollars in stimulus are flowing, but Federal Reserve Chair Jerome Powell cautioned Wednesday that a full recovery remains far off. While the recovery from the pandemic has been faster than expected due to rapid action by Congress, "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 said at a press conference following the two-day policy meeting. He warned against becomin...
AFP
-
Fed boosts US growth forecast to 6.5% this year
Washington (AFP) - US central bankers are much more optimistic about the economic outlook, boosting their median growth estimate by more than two points to 6.5 percent, the Federal Reserve said Wednesday. Faster growth will also cause inflation to rise to 2.4 percent, but the projections from members of the policy-setting Federal Open Market Committee (FOMC) showed they do not expect to raise their benchmark interest rate through at least 2023. The upgraded forecasts, the first released since December, reflect the expected boost from the $1.9 trillion relief package President Joe Biden signed ...
AFP
-
Fed faces 'balancing act' between inflation, faster growth
Washington (AFP) - The Federal Reserve has made it clear it is too soon to think about pulling back on stimulus for the pandemic-battered economy, but finds itself stuck between an improving outlook and inflation fears. The US central bank opened the last session of its two-day policy meeting on Wednesday, amid an acceleration of Covid-19 vaccine campaigns and reopening of businesses, which are fueling optimism that life in the United States can return to normal. And into that improving economy comes a flood of government funds: a $1.9 trillion relief package President Joe Biden signed last we...
AFP
-
Fed likely to boost forecasts as stimulus funds flood in
Washington (AFP) - The Federal Reserve opened its two-day policy meeting on Tuesday and is expected to provide a more upbeat outlook for the US economy, which will soon be awash in $1.9 trillion in stimulus funds. The extra spending is exactly what Fed Chair Jerome Powell had been urging for months to help repair the damage wrought by the coronavirus pandemic, while also pledging to keep interest rates near zero and continue the bank's massive monthly bond buying program. Despite fears in markets that the battered US economy will roar back and ignite an inflationary spiral, Powell's commitment...
AFP
-
'Markets be damned!': Fed standing firm on inflation fears
Washington (AFP) - Skittish investors have see-sawed between celebration about the expected US economic recovery and nail-biting over a possible price spiral, but the Federal Reserve is standing firm on keeping interest rates low. In the balance between allowing faster growth -- and rising prices -- in order to restore some of the more than nine million jobs still missing due to the Covid-19 pandemic, Fed Chair Jerome Powell's message has been clear: he wants to see more people back to work. Analysts are expecting the Fed's policy-setting Federal Open Market Committee (FOMC) to maintain its ve...
AFP
-
'Markets be damned!': Fed standing firm on inflation fears
Washington (AFP) - Skittish investors have see-sawed between celebration about the expected US economic recovery and nail-biting over a possible price spiral, but the Federal Reserve is standing firm on keeping interest rates low. In the balance between allowing faster growth -- and rising prices -- in order to restore some of the more than nine million jobs still missing due to the Covid-19 pandemic, Fed Chair Jerome Powell's message has been clear: he wants to see more people back to work. Analysts are expecting the Fed's policy-setting Federal Open Market Committee (FOMC) to maintain its ve...
AFP
-
US won't reach 'maximum employment' this year: Powell
Washington (AFP) - The US labor market faces a lengthy recovery and the economy will not see maximum employment this year, Federal Reserve Chair Jerome Powell said Thursday. While he expressed hope about the restoration of jobs lost during the pandemic, Powell noted that millions of workers have left the labor force. "I think it's not at all likely it would reach maximum employment this year. I think it's going to take some time to get there," Powell said during an event hosted by The Wall Street Journal. While there is "good reason to expect job creation to pick up in coming months," Powell ...
AFP
-
Fed's Powell downplays inflation fears, pledges to keep rates low
Washington (AFP) - Federal Reserve Chairman Jerome Powell attempted to tamp down rising inflation concerns, and again on Tuesday pledged to keep benchmark lending rates low until jobs recover and prices have risen consistently. The Covid-19 pandemic remains the key factor determining how quickly the world's largest economy can recover, but Powell said vaccine rollouts offer hope things can return to normal quickly and the Fed has the tools to deal with price increases. With Congress moving towards approving President Joe Biden's $1.9 trillion rescue plan, the central bank chief remained steadf...
AFP
- More