The U.S. Federal Reserve Board (Fed) Chairman Ball said on the 14th that the U.S. economy is at a turning point and will enter a period of accelerated growth and more job creation. He also mentioned that the Fed has low chances of raising interest rates by the end of 2022, and may start scaling back quantitative easing (QE) long before it does so.
Reuters reported that Bauer said at an online event hosted by the Economic Club of Washington that the U.S. economy is entering a period of rapid economic expansion, but the risk of a surge in the number of people infected with New Coronavirus (CCP) remains.
He also admitted that the U.S. federal budget is on an unsustainable track in the long run, but the current level of debt is sustainable, not to mention that now is not the time to think about debt.
Bauer also said that the possibility of raising interest rates before the end of 2022 is low, but this is based on the results, and it is likely that quantitative easing will be scaled back before raising rates.
He also reiterated that the inflation rate has been less than 2% for a long time, and hopes to be moderately above the target afterwards; low inflation and deflation, both reducing the central bank’s ability to resist recession.
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