Powell Made A Statement Regarding Asset Purchases!

Fed Chairman Jerome Powell made a statement regarding asset purchases, which is one of the issues that global markets have recently focused on.

US Federal Reserve (Fed) Chairman Jerome Powell announced the purchase of assets. Powell stated that the Fed will reduce its bond purchases before considering hike rates. Speaking at the virtual event organized by the Washington Economy Club, Powell said, "We will reduce asset purchases if we see more concrete progress towards the targets we announced in our verbal orientation in December". He said, “This will most likely happen before we even consider raising rates. You reinvest in these bonds when the asset purchases are down to zero, the balance sheet size is fixed, and the bonds expire. Another step is to allow bonds to expire. We have not made the decision to do this yet.” Powell also said the Fed did not think it would sell bonds to the market.

No Increase in Interest Rates Is Expected Until 2024

Fed Chairman Jerome Powell also spoke about the interest rate path at the relevant event. "Most members of the committee do not anticipate a rise in interest rates until 2024. But this committee estimate is just an evaluation of us, not a decision we vote or act as a group. Markets are overly focused on what we call economic forecast. If I were I, I would focus on the results we describe." Fed members will enter the blackout period, during which they will not make public comments, from Friday evening before the interest rate meeting to be held on April 27-28.