Fed meeting concludes: Rates Held Steady
1. The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered.
2. Inflation has risen, largely reflecting transitory factors.
3. “Progress” has been made towards the Fed’s goals on employment and inflation, a nod that changes to policy, particularly regarding the monthly bond purchases, could be on the way.
4. The FOMC approved the creation of a standing repo facility for the bond market where institutions go to exchange high-quality collateral for cash.