Fed Chairman Powell, the central bank of the United States, said at a press conference on the 16th that he would enter into concrete discussions at a future meeting on measures to reduce the scale of the current quantitative easing. I made it.
The focus will be on timing and method, as downsizing will be a major shift in monetary easing.
At the monetary policy meeting held by the Fed until the 16th, there is a discussion about quantitative easing, which is one of the pillars of monetary easing, called "tapering", which gradually reduces the amount of government bonds purchased. Or it was noticed.
At a press conference after the meeting, Chair Powell said that he had begun discussions such as confirming the economic situation, and said, "We will not talk about the timing of the contraction until we confirm more economic indicators." It was.
He said, "We will evaluate economic progress at future meetings," and stated that he would enter into concrete discussions after the next meeting and promote information dissemination to avoid market turmoil.
At this meeting, the timing of the cancellation of the zero interest rate policy, which had been set after 2024, is expected to be advanced by the end of 2023.
The Fed's large-scale monetary easing, which was introduced in response to the spread of the new coronavirus, has supported not only the US real economy but also the global financial markets, so it is a time of reduction in quantitative easing, which is a major shift. And methods will be the focus of the future.