January 27, 2021

The Fed tells not to worry about inflation, as it has to finish its job

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

Chair Powell used the January meeting to stress again that the Fed’s job to sustain the recovery is not finished. Rates will remain near zero for a prolonged period and asset purchases will continue at the current pace. He strongly dismissed any possibility of a tapering anytime soon.
The Fed tells not to worry about inflation, as it has to finish its job
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

 
  • The January meeting was a very quiet one, as expected. The current stance and long-term strategy were reaffirmed.
  • Risks to the economy are mostly in the short term and limited to the sectors most affected by the pandemics. Expectations of a rebound were confirmed.
  • Fears of surging inflation were dismissed, as short-term volatility will be offset by the persistence of deflationary factors. Therefore, and given the still large level of unemployment, it is far too early to contemplate any tapering in asset purchases.
  • The Fed does not appear worried about the strong equity prices nor sees any significant vulnerabilities in financial markets.

 

Download the full publication below

The Fed tells not to worry about inflation, as it has to finish its job
January 27th, 2021

Also interesting

brainstorming-concepts
June 23, 2021
Press Releases

Aperture Investors and Sycomore AM Funds now available through Volksbank

Picture1
00:07:08
June 22, 2021
Podcast

The Spotlight ǀ Powering progress: Luca Fasan presents the new Sycomore Global Education Fund

Picture1
June 22, 2021
Active Equity

Powering progress: the Sycomore Global Education Fund