Fed maintains current large-scale monetary easing measures wary of slowing employment improvement

The Federal Reserve Board of Governors, the central bank of the United States, held a meeting to decide monetary policy and decided to maintain the current large-scale monetary easing measures.

The statement has increased caution, saying that the renewed spread of the coronavirus infection has slowed the pace of employment improvement.

The Fed issued a statement at a monetary policy meeting for two days until the 27th.

Among them, caution is given that the pace of improvement in economic activity and employment has slowed in recent months due to the re-expansion of the new coronavirus infection, and the impact is particularly concentrated in fields such as the service industry. I am strengthening.

For this reason, the Fed has decided to maintain the zero interest rate policy introduced in March last year and the quantitative easing policy to buy government bonds and supply a large amount of funds to the market in order to support the economy.

The stock market has been stable as the Fed has indicated that it will continue large-scale monetary easing for a long period of time, but looking at the real economy, last month, non-farm payrolls were the first in eight months. The employment environment is still in a difficult situation.

The Fed will be persistent in working to improve the unemployment rate, while looking at the effects of the Biden administration's economic policies.

Fed Chair Powell Vaccine Spread Is Important for Economic Recovery

Fed Chair Powell said at a press conference about the deterioration of the employment environment: "The high unemployment rate of African Americans and Hispanic Americans working in the service industry is serious. The spread of vaccines is more important for the recovery of economic activity. There is nothing to do, "he said, stressing the dissemination of the new Coronavirus vaccine in order for corporate activity to normalize and employment to return in a wide range of fields.

"I have great respect for Treasury Secretary Janet Yellen and I am confident that we will have a good working relationship," said Powell, who was asked about his relationship with the new Biden administration.

Although there were some feuds with the former Trump administration over monetary policy methods, he expressed his intention to work closely with the economy to recover.