According to FED Upside Risks Increased in Inflation

In the July issue of the US Federal Reserve's (FED) Monetary Policy Report, it was stated that upside risks to the inflation outlook have increased in the near-term.

According to FED upside risks increased in inflation. The US Federal Reserve (FED) stated that the effects of the coronavirus (Covid-19) epidemic continued to be felt in the US economy, and accordingly, upside risks to the inflation outlook increased in the near term. In the report, which Fed Chairman Jerome Powell will present to Congress next week, it was underlined that the progress in vaccination in the first half of 2021 led to the re-normalization of the economy and strong economic growth with supportive monetary and fiscal policy. In the report, which stated that the effects of the Covid-19 epidemic continued to be felt in the US economy, it was noted that employment remained well below pre-epidemic levels. Reminding that the Federal Open Market Committee (FOMC) kept the policy rate close to zero in the first half of the year and continued to buy bonds to support the economic recovery, the report stated that these measures will ensure that the monetary policy continues its strong support to the economy until the recovery is completed, with the Committee's guidance on interest rates and FED's balance sheet . It was stated that the Committee will continue to evaluate the progress in line with the targets in the upcoming meetings regarding the FED's asset purchase program, and it was stated that upside risks to the inflation outlook have increased in the near term.