US Fed meeting Quantitative easing scale reduction “We will proceed with discussions multiple times in the future”

The Federal Reserve Board, the central bank of the United States, held a meeting to decide monetary policy, and in response to the economic recovery trend, about the quantitative easing introduced from last year, "In the future, at multiple meetings, the economy We will continue to evaluate the progress, "he said, and revealed that he will proceed with discussions on policy changes called" tapering, "which will gradually reduce the scale.

The Fed held a monetary policy meeting for two days until the 28th and decided to maintain the current large-scale monetary easing policy consisting of zero interest rates and quantitative easing.

In a statement, the US economy continued to see a strong recovery in economic activity and employment due to the spread of the new coronavirus vaccine.

And, among the monetary easing measures, regarding quantitative easing to purchase government bonds and supply funds to the market, "The economy is moving toward the goal, and we will continue to evaluate the progress at multiple meetings in the future." As a result, he clarified that he will proceed with discussions on policy changes called "tapering," which will gradually reduce the scale.

Inside the Fed, in response to the record rise in prices, several participants have pointed out that they should proceed with concrete discussions on reducing the scale of quantitative easing.

However, the statement also mentions that employment improvement is not complete and that the risk of the new virus remains, and it is likely that the timing of policy change will be decided based on this situation.

Powell scales down "timing depends on economic data"

At a press conference, Fed Chair Powell revealed that he had discussed how to proceed at this meeting on reducing the scale of quantitative easing.

However, regarding the timing of the start of tapering, which is expected to be decided by the end of the year in the financial markets, he said, "The timing depends on economic data. We will notify you in advance when changing policies." I stopped.

Meanwhile, Powell said of the delta strain of the mutant virus, which is also spreading in the United States, "For the past year or so, the economic impact has diminished with each wave of re-spread of infection, but the delta strain It is not clear yet, so we will look carefully. "