Fed Chairman: The easing could begin questyear and do not rush to raise interest rates

Federal Reserve Chairman Jerome Powell said the central bank could start reducing its monthly bond purchases questyear, even though he wouldn’t be in a hurry to start raising interest rates later.

The economy has now faced the test of “significant incremental progress towards the Fed’s inflation target,” which Powell and colleagues said would be a precondition for reducing bond purchases, while the labor market has also made clear progress. the Fed chief said Friday, in Text prepared for a hypothetical speech at the Federal Reserve’s annual Jackson Hole symposium in Kansas City.

At the latest Fed meeting in late July, Powell said: “I was of the opinion, like most attendees, that if the economy develops broadly as expected, it might be worth starting to slow down the pace of buying. asset quest’year”.

He added: “Last month made further progress in the form of a solid employment report for July, but it also saw a greater spread of the delta variable. We will carefully evaluate the data. in arrival and evolution of risks “.

At the July FOMC meeting, most Fed officials agreed that it was likely appropriate to begin reducing the central bank’s $ 120 billion-a-month bond purchase program before the end of the year, according to the minutes. of the meeting.

Some are pushing to move next month.

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