The meeting of the central bank’s monetary policy committee could give its very first indications on the reduction of support to the economy.
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The US Federal Reserve (Fed) began its meeting on Tuesday morning, of which inflation should be the central subject and at the end of which it could give its very first indications on the reduction of its support to the economy.
The Fed’s Monetary Policy Committee (FOMC) meeting “started at 9:00 am as scheduled,” a Fed spokesperson said.
This meeting, which will end Wednesday at noon, will be followed by a press release Wednesday at 2:00 p.m. (6:00 p.m. GMT) and a press conference by the president of the institution Jerome Powell at 2:30 p.m. (6:30 p.m. GMT).
The officials of the Washington monetary institution should not announce any immediate changes, both for the key rates which should for a moment in the range of 0 to 0.25%, and for asset purchases whose pace should be maintained.
On the other hand, they could distill some clues as to when the Fed will start to reduce its support to the economy, the recovery is now underway.
The Federal Reserve will also update its economic forecasts, in terms of growth, employment and inflation.
The price increase in May was the strongest in 13 years, + 5% over one year, according to the CPI index. The Fed uses another measure of inflation, the PCE index, which in April experienced its strongest acceleration since 2007, + 3.6% over one year.
The monetary institution has so far insisted that this increase would only be temporary, and that inflation should, from 2022, return to around 2%, its target. But concerns persist, and his comments on the matter are eagerly awaited.
Fed officials want the country to return to full employment before acting, but if the unemployment rate has fallen to 5.8%, it is still very far from the 3.5% before the crisis , and 7.6 million jobs are still missing from this period.
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