The Federal Reserve finally has what it wants and predicted: signs of a US economic recovery that could undo some of the damage done by the Covid-19 pandemic.
But when the central bank’s policy-setting Federal Open Market Committee (FOMC) opens its two-day meeting on Tuesday, analysts do not expect officials to raise rates or otherwise signal any backing away from the easy money policies rolled out to aid the US bounceback, despite some fears of rising inflation.
“No one is expecting any major policy changes in terms of rates or the Fed’s asset purchases,” Andrew Hunter, senior US economist at Capital Economics, told AFP.
In fact, Fed officials have clearly stated that they will not be spooked by temporary price increases into reacting too quickly and pumping the brakes on stimulus measures.
The government in recent weeks has reported the first signs that Covid-19 vaccines are bringing laid-off workers back to work and ending the suffering of businesses hard-hit by closures meant to stop the contagion.
Labor Department data showed unemployment claims hit the lowest point since the…