Breaking News

Amid US election uncertainty, the Fed is likely to lay low this week

www.business-standard.com

The Federal Reserve is scheduled to release its latest policy statement after two days of debate in which policymakers lacked a critical piece of information: who will run the US for next four years

By Howard Schneider

WASHINGTON (Reuters) – The Federal Reserve is scheduled to release its latest policy statement on Thursday after two days of debate in which policymakers lacked a critical piece of information: who will run the United States for the next four years.

With the final result of Tuesday’s presidential election still uncertain, the U.S. central bank’s policy-setting Federal Open Market Committee is expected to stick closely to its last statement and repeat its pledge to do whatever it can to help the through the coronavirus-triggered recession.

Until it’s clear who the next U.S. president will be, “it is the wrong time to be in the public eye,” said William English, a former head of the Fed’s monetary affairs division and now a professor at the Yale School of Management.

“They mostly don’t want to be a source of any additional uncertainty at this point. So they’d aim for a pretty quiet meeting,” he said in a recent interview with Reuters.

The Fed’s latest policy statement, due to be released at 2 p.m. EST (1900 GMT), will update the central bank’s view of the and likely repeat its prior promise to keep its key overnight interest rate near zero until the U.S. labor market returns to “maximum” employment and inflation is on track to exceed the 2% target “for some time.”

Fed Chair is scheduled to hold a news…

Reuters

Read full article



Source link