The Federal Reserve Board of Governors, the central bank of the United States, has revised its economic judgment upwards, saying that economic activity is improving due to the spread of vaccination against the new corona virus.
Meanwhile, at a press conference, Chair Powell said the change in monetary easing was "not yet time".
The Fed issued a statement at a monetary policy meeting for two days until the 28th.
According to the report, the US economy "has strengthened economic activity and employment supported by the spread of vaccination and the country's economic measures. The industries most affected by the spread of infection are still weak, but improvement is seen." However, we have revised our economic judgment upwards.
On the other hand, the recent rise in prices "reflects temporary factors," and the meeting decided to maintain the large-scale monetary easing policy consisting of zero interest rates and quantitative easing introduced after March last year. I decided.
It is speculated that the Fed may first reduce the scale of quantitative easing, which supplies large amounts of money to markets, as the economy recovers.
"It's not the time yet. We need to see a big improvement in economic data to think about tapering = reducing the scale of quantitative easing," Powell said in a press conference. He stated that he would continue the current mitigation measures until improvements and stable price increases were seen.Keywords: