In a recent interview, President of the New York branch of the US Federal Reserve (Fed) John Williams said that now is not the time for the Fed to adjust its bond- buying program , despite the fact that the Fed’s branches It makes perfect sense to discuss measures for the future.
According to Williams, the US economy has improved and is on a positive trajectory, but is still far from significant progress that makes the Fed consider adjusting its bond buying program.
The Fed is buying $120 billion worth of bonds a month as part of a policy program it launched last year in response to the COVID-19 pandemic. Fed officials said the agency will begin scaling back its bond-buying program as the economy makes further significant progress toward its goals. The Fed’s policymakers are scheduled to meet on June 15-16.
Concerns about inflation were one of the reasons policymakers started discussing scaling back bond purchases sooner. Statistics show that the consumer spending price index in the US increased by 3.6% in April.
However, Mr. Williams “underplayed” the risk of inflation exceeding the Fed’s 2% target for a long time. Businesses have had a hard time adjusting to the rapid reopening of the US economy due to supply chain issues, but these issues will improve in the coming months and quarters, he said.
Source: Vietnam News Agency