June 10, 2020

THE FED IS IN “WAIT AND SEE” MODE, BUT KEEPS THE DOOR OPEN TO ADDITIONAL MEASURES

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

In Short

As widely expected the FOMC does not foresee any rate increase before end-2022, or using Chair Powel words: “We are not thinking about raising rates. We are not even thinking about thinking about raising rates”
THE FED IS IN “WAIT AND SEE” MODE, BUT KEEPS THE DOOR OPEN TO ADDITIONAL MEASURES
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • The Fed expects quite a strong rebound, but the severe disruption caused by COVID will require rates to remain at near zero until 2022. The unemployment rate will remain high for long.
  • The May employment report was a pleasant surprise, but also an indication on how unpredictable is the outlook. This warrants waiting and learning from new data before adapting the stance.
  • Anyway, Chair Powel renewed the commitment to use aggressively all the existing tools; bond purchases will continue at least at the current pace. Further instruments, like yield curve control are being discussed.

Download the full publication below

THE FED IS IN “WAIT AND SEE” MODE, BUT KEEPS THE DOOR OPEN TO ADDITIONAL MEASURES

Also interesting

virtual-money-concept,-gold-bitcoins-digital-cryptocurrency-use-blockchain-technology
00:02:48
April 9, 2021
Fund Manager Video

Aperture Investors | European Markets Update

Blue-sky-white-clouds-temperature-hot-thermometer
00:06:05
April 7, 2021
Podcast

The Spotlight ǀ Generali Investments Podcast: Some like it hot

Antique golden compass
April 7, 2021
Market Compass

Market Compass April 2021