Bengaluru (Reuters) – The US Federal Reserve (Fed) is unlikely to reduce its large-scale bond purchases this year, in the view of one of its executives.
Monetary policy is currently well placed, said the president of the Fed offshoot of San Francisco, Mary Daly, the “Wall Street Journal” in an interview published on Thursday. The Fed is currently supporting the economy, among other things, with monthly securities purchases with a volume of 120 billion dollars.
Daly expects the US economy to pick up speed again in the second half of the year. She counted the Covid vaccinations as one of the reasons. The US Federal Reserve had signaled that it would only cut back on its securities purchases when conditions on the job market and inflation improve significantly. But recently the situation on the labor market remained rather tense with an unemployment rate of 6.3 percent and a comparatively low job creation.
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