the staff of the Ridgewood blog
Washington DC, the Federal Reserve kept its interest rates range at near-zero levels Wednesday but hinted at future tightening and balance sheet realignment. The Fed signaled a slow and steady approach to surging inflation.
The Federal Open Market Committee (FOMC), the Fed’s monetary policy arm, kept its baseline interest rate range at 0 to 0.25 percent, the level set in March 2020 amid the onset of the coronavirus pandemic. The FOMC also said it would conclude its monthly purchases of Treasury bonds and mortgage-backed securities in March, in line with a pace of tapering set in December.
“With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the FOMC said in a statement.
Fed Chairman Jerome Powell said asset purchases also are likely to halt in March, and the central bank released a paper outlining principles to start “significantly reducing” the bond holdings on its balance sheet without indicating a specific time frame.
Every time this man talks, the market tanks.
Too bad…this would’ve helped the midterm elections turn completely Blue.