The Fed will change monetary policy only gradually and transparently

The change in the monetary policy of the US Federal Reserve (Fed) will be gradual and transparent, its boss Jerome Powell said on Thursday. According to Powell, the Fed will change the loose stance of monetary policy, which supports the economy affected by the corona crisis, only "gradually with great transparency" and only after the economy has fully recovered. Powell, "As we get significantly closer to our goals, we will gradually reduce the volume of purchases of government bonds and mortgage-backed securities. And then we will start testing in the long run to see if we can raise interest rates." said. Powell told National Public Radio that rapid vaccinations and historic fiscal support had improved the US economic outlook. "At least the first dose of the vaccine has already been given to about 85 million Americans. 2.5 million doses of the vaccine are given daily. And that will allow us to reopen the economy sooner than we expected." "The amount of fiscal support for the economy is historic and this will lead to higher economic activity and job creation. I think much credit must be given to Congress," he said. The Fed has improved its growth forecast since the last Monetary Committee last week. He currently expects the economy to expand at 6.5% this year, the highest since 1983. In 2020, the US economy fell by 2.4%.