Fed Chairman Jerome Powell held a virtual news conference addressing the public that it will continue to do its proposed programs as well as keeping interest rates near zero.
In terms of the timing and size of future adjustments to the monetary policy, the Fed mentions in their press release that the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its two percent inflation objective.
However, there was no mention of how long the bond purchase will last, with Powell only saying they will continue “as needed.” At the same time, the Fed did not discuss any of the specific programs they have implemented during the current crisis.
In addition, Powell also discussed that the lending facilities the Fed has executed that have stretched across money markets, small businesses, and municipalities, with a Main Street program in the wings.
Fed Chairman Jerome Powell added in a post-meeting news conference assures the press:
“We’re going to not be in any hurry to withdraw these measures or to lift off. We’re going to wait until we’re quite confident that the economy is well on the road to recovery.”
The Fed is currently engaged in an open-ended program of purchasing Treasurys and mortgage-backed securities as well as bonds.
Last March, the Federal Reserve was able to slash rates near zero in order to maintain the U.S. markets’ volatility.
The Fed also reiterated that they cannot provide direct financial assistance because it’s the duty of Congress to execute such measures.
However, they have the power to implement loans to those who are in need but Powell suggests that this may not be a good solution to businesses because of the current economic conditions.
It seems that the next set of decisions will primarily rely on the developments in finding a cure for the coronavirus.
The full version of the Fed news conference can be seen here on the Fox Business YouTube channel.
Featured image courtesy of Fox Business/YouTube Screenshot
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