Thursday, 8 April 2021
Federal Reserve officials remain wary about the ongoing risks of the coronavirus pandemic and are committed to bolstering the economy until its recovery is more secure, minutes of the U.S. central bank’s latest policy meeting showed on Wednesday.
With their own forecasts projecting the strongest run of U.S. economic growth in nearly 40 years, "participants agreed that the economy remained far from the (Fed’s) longer-run goals and that the path ahead remained highly uncertain," the minutes from the March 16-17 meeting said.
"Participants noted that it would likely be some time," before conditions improved enough for the central bank to consider reducing its current level of support.
Though several policymakers at the meeting indicated they thought interest rates might need to increase sooner than anticipated by the bulk of their colleagues, and perhaps as soon as next year, there was little sense of urgency around that issue in the minutes.
Labor markets were improving, but remained gashed by the pandemic. Inflation would pick up, the minutes noted, but likely subside next year. A recent jump in US Treasury yields was "generally viewed ... as reflecting the improved economic outlook.