Fed and Brainard confirm economic progress but targets are still far

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June 2, 2021
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(Teleborsa) – “The Question from consumers strongVaccination coverage is increasing Reopening the sectors affected by the epidemic In fits and starts. The epidemic has also been stopped, Unprecedented reopening And she is born Not sharing of a temporary nature between supply and demand at the sectoral level. These imbalances make it difficult to accurately assess inflationary developments and resource scarcity.”

And therefore Lyle BrainardSpeaking to The Economic Club, the Governor of the Federal Reserve Bank of New York spoke about the macroeconomic situation that characterizes the United States and the Fed’s monetary policy strategies.

“I expect to see Further progress In the coming months, but The economy is far from our goals The banker clarified that there are risks in both directions, adding that “the best way to reach our goals of maximizing employment and inflation is to stable and transparent in our area monetary policy approach, stay Attentive to the evolution of data and get ready for Adjust as needed“.

“I will closely monitor inflation indicators and expectations for any signs of an unwelcome development in the long-term inflation outlook,” Brainard notes, making sure that “if inflation is to move significantly and persistently above 2%, there are tools and expertise to bring it back to target.” . But the Fed acknowledges that “just as it is important to be alert to the upside risks of inflation, so too is it. It is important to be alert to the dangers of early withdrawal of stimuli“.

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“keep your A stable results-based approachIt concludes that during the transition period it will help to ensure the necessary economic momentum and when the current favorable winds turn into headwinds they will not be reduced by an early tightening of financial conditions. The best way to reach us and support us Maximum employment and inflation targets is to stay Stable and clear in our approach, but also Beware of changing circumstances“.

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