Fed Expects Growth Surge, İnflation Jump İn 2021 But No Rate Hike

18 March 2021

The FOMC’s policy statement, which kept the benchmark overnight interest rate in a target range of 0-0.25%, was unanimous. While inflation is expected to jump to 2.4% this year, above the central bank’s 2% target, Powell said that is viewed as a temporary surge that will not change the Fed’s pledge to keep its benchmark overnight interest rate near zero as part of an effort to ensure the economic wounds from the pandemic are fully healed. Opinions among the Fed’s 18 current policymakers did shift somewhat, with four now expecting rates may need to rise next year and seven seeing a rate increase in 2023.
Source : Reuters
Post by :Republic of Turkey Ministry of Trade