In a policy meeting on Wednesday, the U.S. Federal Reserve told the public that monetary easing will continue and the benchmark interest rate will be kept near zero. Just like previous statements from Federal Open Market Committee (FOMC) members, the committee within the central bank is not concerned about inflation and says that it should only have “transitory effects” on the American economy.
Inflation to Have ‘Transitory Effects,’ While ‘Recovery Is Uneven and Far From Complete’
The most recent FOMC meeting held on Wednesday was no different than the past number of committee gatherings which explained that the central bank is still dealing with pressure from the pandemic. A press release that followed the meeting highlighted that the “pandemic is causing tremendous human and economic hardship across the United States and around the world.”
The Federal Reserve, however, has seen indicators that “economic activity and employment have strengthened,” but Fed Chairman Jerome Powell stressed the recovery is “uneven and