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American FOMC (Federal Open Market Committee) Meeting Prospects
American FOMC (Federal Open Market Committee) Meeting Prospects ; American FOMC (Federal Open Market Committee) Meeting Prospects
Yazar: Zack Smith
Yayınlanma: 25 Ocak 2021 15:02
Güncellenme: 21 Aralık 2024 23:37
American FOMC (Federal Open Market Committee) Meeting Prospects
Investors are preparing for a week full of notable events this week, with the Federal Open Market Committee's January policy meeting, announcements of earnings reports from several key institutions, and economic data releases. January FOMC (Federal Open Market Committee) meeting The conclusion that can be drawn from their recent public statements is that Federal Reserve officials will continue to support the crisis period monetary policy. Fed officials signaled that interest rates will remain close to the current level at least until 2023, and that the aggressive asset purchase program will continue at a monthly rate of $ 120 billion until "significant progress" is achieved in the economic recovery."We think the Fed's withdrawal of incentives at this point is unexpected."
Jon Adams, a specialist investment strategist at BMO Capital Markets, told Yahoo Finance, " From the statements the Fed has made so far, the disadvantage of withdrawing incentives sooner than expected is far greater than the advantage of holding incentives longer than expected. It seems that the Fed wants to keep the inflation target above 2 percent for at least 12 months before considering an increase to the rates." As a result, many economists expect the strength of economic recovery to be determined with the widespread distribution of the COVID-19 vaccine and containment of the pandemic. Many expect the FOMC meeting to be held this month to be another buffer meeting. Fed Chairman Jerome Powell said earlier this month that he describes the situation of the US economy as far from its targets, but the Fed is careful not to withdraw its support prematurely."We do not expect a change in the policy stance and FOMC statement"
"We do not expect a change in the policy stance and FOMC statement," Morgan Stanley economist Ellen Zentner said in a briefing note on Thursday. “Statements from President Powell highlighting the sensitivity of these early days can be expected. Changes that can be made in the purchasing schedule seem off course. We continue to expect the reduction in bond purchases, which we watched at the December meeting, to start January 2022." Other economists said Fed officials would likely erase concerns about the recent rise in bond yields and inflation expectations. Because the historical amount of incentives creates an enormous liquidity contribution to the market, while at the same time strongly raising expectations for economic recovery."Inflation will be the key to reducing bond purchases as well as contracting."
TD Securities economists added in a note released Friday, "Inflation will be key to reducing bond purchases as well as contraction. But most officials seem skeptical that a few strong quarters for growth will lead to a steady recovery in the trend. We doubt that too." What will change at the first Fed meeting of the new year will be the roster of members voting in the FOMC. In 2021, the new voting members will be Charles Evans of the Chicago Fed, Mary Daly of the San Francisco Fed, Raphael Bostic from the Atlanta Fed, Thomas Barkin of the Richmond Fed and Fed Administrator Christopher Waller. However, given the consensus among Fed officials to maintain current policy positions as the coronavirus outbreak continues to affect the economy, the new composition of voting members will not be expected to significantly influence policy decisions this year. American FOMC (Federal Open Market Committee) Meeting Prospects Source: https://finance.yahoo.com/ You may also be interested in this:Financial Outlook of the Companies After the Earnings Reports - 2
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