Published, Thursday, Sept 23, 2021 05:30 am EST
by Richard Cason,
@newsmmforex
@nnmforex
in
Currency Analyst
NewsMovesMarketsForex
Key Take away’s-
- FOMC holds interest rates near zero at 0.25%, continues current pace of Asset Purshases
- Fed Hints possible role back of massive stimulus program and begin gradual tapering in middle 2022
- Fed Projects the Over all Labor Markets Continues to Improve “Demand for Labor is Very Strong”
- August the Pandemic has Slowed recovery in Leisure and Hospitality, Motor Industry Semi Conductors production bottlenecks supply chains
- Joblessness equally affected Lower wage workers in Service sectors and on Black Americans and Hispanics
- FOMC projections the overall Labor markets has improve- unemployment rate to decrease to 4.8 % at the end of this year and 3,5% in 2022 through 2023
Fed Chair Jerome Powell held press conference on September 22, 2021 on the U.S. Economy and interest rates. The Federal reserve system Open Market Committee on Monetary policy decided to hold interest rates near zero at 0.25 percent. FOMC also continued to maintain the massive stimulus Asset purchase program at its normal pace.
According to the Fed Chair Powell, the path of the economy continues to depend on course of the virus and risk to the economic outlook remains. Delta variant has continued to accelerate the pace of Covid-19 cases and hindering the economic recovery, the continued progress on vaccinations would help contain the virus and support the return to a more normal economic conditions.
The FED notes real GDP increased at a robust pace at 6.4% in the First half of this Year and growth is widely expected to continue in the Second half of 2021.
The FOMC also signaled that if the Economy continues on the same path of positive trajectory sometime in the middle of 2021 that it may gradually begin cutting back on the pace of the massive stimulus bond asset purchasing program. And increasing interest rates on a broad scale.
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Ref: Fed Chair Powell image from CNBC TV
