Wednesday, April 17, 2024

Complete Asset Purchases | Too early to raise rates, says Fed chief

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Maria Gill
Maria Gill
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(Washington) The President of the US Central Bank said, on Friday, that “the time is approaching” to start reducing its purchases of assets, but he believes that it is “too early” to raise key interest rates soon, to 10 days from the next monetary session. Meeting.

“With the time approaching to reduce our asset purchases, it would be premature to tighten policy by raising interest rates now,” said Jerome Powell during a virtual conference, as that would “slow job growth.”

“We are on the right track to begin phasing out our asset purchases, which, if the economy develops on a large scale as expected, will be completed by the middle of next year,” he said again.

Asset purchases, one of the Fed’s tools to combat the crisis, amount to $120 billion per month. And the enterprise, after the economic recovery began, wants to gradually reduce it to zero.

The schedule is expected to be announced at the Federal Monetary Committee’s next meeting on November 2-3, and cuts begin in the same month.

Key prices, which were lowered in March 2020 to a range of 0 to 0.25%, will have to wait some time before taking off again.

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