Fed Day Reveals Progress, But It’s Too Soon for Tap
The Federal Reserve didn’t change short-term interest rates or announce it was cutting back on bond buying, but it did say the U.S. economy “continued to strengthen,” making **progress toward its goals** but not quite there.
* Fed Chair Jerome Powell told reporters at a virtual press conference “we **won’t have an extended period of high inflation**,” something Fed officials have insisted on for months despite evidence of rising prices.
* Powell defined this “transitory” pressure as “something that doesn’t leave a **permanent mark on inflation**.” Companies may not reverse their price increases, he explained, but they’ll stop raising them at some point.
* The policy statement and Powell’s remarks to reporters seemed to **play down concerns** about any economic fallout from the spread of the Delta variant, saying consumers and businesses have “learned to live with” the virus.
* Fed officials continued their deliberations Tuesday and Wednesday about when to begin tapering their asset purchases. Powell said they want to see **more hiring before pulling back**, but “there’s a range of views” on the timing.
**What’s Next:** The Fed will measure ongoing progress at coming meetings, which means an **announcement about bond tapering** could come before the end of the year. The central bank’s next policy meetings are to be held Sept. 21 to 22 and Nov. 2 to 3.
—*Liz Moyer*
https://www.reddit.com/r/StockMarket/comments/otvzxw/fed_day_reveals_progress_but_its_too_soon_for_tap/
