The U.S. Federal Reserve has decided on Wednesday to maintain its main rate unchanged near 0%, as well as the current pace of asset purchases at $120 billion per month until the maximum employment and 2% inflation targets are achieved.<\/p>\n\n\n\n
The Fed\u2019s policy statement, which was released following the two-day Federal Open Market Committee (FOMC) meeting, noted that the bond buying helps foster smooth market functioning and accommodative financial conditions, supporting the flow of credit to households and businesses.<\/p>\n\n\n\n
The Fed now expects the U.S. economy will grow by 6.5% this year, compared with an expected 4.2% growth rate last December.<\/p>\n\n\n\n
If achieved, this would be the highest growth rate for the American economy since it expanded by 7.2% in 1984.<\/p>\n\n\n\n
Moreover, the Fed expects the unemployment rate to decline from the current level of 6.2% to 4.5% by the end of 2021, 0.5% less than the 5% rate expected in the December meeting.<\/p>\n\n\n\n
The upbeat forecasts are attributed to the indicators of economic activity and employment recently rising, as the statement explained, noting that sectors most adversely affected by the pandemic remain weak.<\/p>\n\n\n\n
Furthermore, the Fed expects inflation in the U.S. will exceed the 2% strategic target, reaching 2.4% before declining again next year.<\/p>\n\n\n\n
Seven out of 18 FOMC members expect to raise rates in 2023, while four believe raising rates could be necessary in 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"
The U.S. Federal Reserve has decided on Wednesday to maintain its main rate unchanged near 0%, as well as the current pace of asset purchases at $120 billion per month until the maximum employment and 2% inflation targets are achieved. The Fed\u2019s policy statement, which was released following the two-day Federal Open Market Committee (FOMC) …<\/p>\n","protected":false},"author":10,"featured_media":32057,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49],"tags":[6867],"class_list":["post-43046","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","tag-federal-reserve"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/43046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=43046"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/43046\/revisions"}],"predecessor-version":[{"id":43048,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/43046\/revisions\/43048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/32057"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=43046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=43046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=43046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}