Concluding the two-day meeting on monetary policy, the policy-setting Federal Open Market Committee (FOMC) reported that ‘amid progress on vaccinations and strong policy support, economic activity and employment indicators have strengthened.’
However, FOMC stated ‘the path of the economy will depend significantly on the course of the virus, including progress on vaccinations.’
‘The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.’
US employment growth accelerated, although eight million jobs lost due to the health crisis remain unrecovered, and Fed expects inflation to rise to 2% target over time.
The Fed also noted it will continue its asset purchase program to relieve the world’s largest economy, in which the central bank buys at least $120 billion of bonds every month.