Fed Chairman Jerome Powell said that the central banks are not engrossing the idea to tighten the existing policies in the foreseeable future. The Fed officials in a statement stated that although inflation will kick in at some point, it won’t have long-term repercussions on the economy.
Powell spoke following the Fed’s two-day conference on Wednesday and surprised the bond market pros with his comments on the regulations at the central bank. Part of his comments suggested that the federal agency is not looking highly satisfied with the idea of reverting back to its $120 billion a month bond-buying program.
In a press briefing that perplexed the interests of bankers and shareholders, the government shifted its focus on amending the regulatory policy to yearn results in a hope that the economy could be bolstered. The slack in the labor market due to the coronavirus outbreak has caused colossal damage to unemployment levels, and the Fed asserted the situation hasn’t improved slightly enough to procure better results. Some key aspects of the economy that have improved include health infrastructure, higher rates of investments in banking assets.