Will all members of the Monetary Committee agree on when rates can start to rise? Verdict tomorrow.
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The monetary committee of the American Central Bank began its meeting Tuesday morning, during which it will review its economic outlook for the coming years, and say in particular what level of inflation it anticipates.
The Monetary Committee (FOMC) meeting started at 11:00 a.m. (3:00 p.m. GMT) as scheduled, a Fed spokeswoman said.
It must end on Wednesday noon. A press release and economic forecast will be released at 2:00 p.m. (6:00 p.m. GMT), followed by a press conference by Fed Chairman Jerome Powell.
The outlook for gross domestic product (GDP), unemployment, inflation and changes in interest rates will be scrutinized by economists and the markets, as the $ 1.9 trillion stimulus plan is finally adopted this week. last, should accelerate the economic recovery.
However, no decision is expected at the end of this meeting, Jerome Powell having repeatedly repeated that it is still far too early to consider raising interest rates – which for a year have been in a range between 0 and 0.25% – or reduce asset purchases.
But observers will be watching for any sign that might emerge as to the Fed’s intentions: Will all members agree on when rates can start to rise? Will clues be distilled in the press release via the chosen words?
This meeting is taking place in the midst of inflation speculation, with some fearing that prices will rise too much, while others, like Jerome Powell, anticipate a rise that will only be temporary.
The Fed is aiming for a long-term inflation rate of 2%, and is prepared to put up with it being higher for a while to achieve this. Its other goal is the return to full employment, which is possible in 2022, according to Treasury Secretary Janet Yellen, who did not specify at what time of the year.
Ms. Yellen predated Jerome Powell as the head of the Central Bank.
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