Easing US stimulus will begin soon says Federal Reserve
Written by crest887fm on August 28, 2021
The US central bank could begin withdrawing stimulus this year as the economy rebounds, the Federal Reserve’s chairman, Jerome Powell, has said.
However, he said the bank was in no rush to raise interest rates despite a recent spike in inflation.
The US economy contracted sharply during the pandemic but has bounced back strongly in 2021.
But Mr Powell said he was monitoring the impact of the Delta variant which is currently sweeping the US.
It has made it cheaper for consumers and businesses to borrow money, but also raised concerns it is contributing to inflation.
Mr Powell said: “We have said that we would continue our asset purchases at the current pace until we see substantial further progress toward our maximum employment and price stability goals.