WASHINGTON: The Federal Reserve, signifies the inflation target has been fulfilled, said on Wednesday it will end the purchase of pandemic era bonds in March and paved the way for three quarter of the percentage of interest rates increased by the end of 2022 when exiting the end of 2022 when exiting the policy was enforced at the beginning of the health crisis.
In a new economic projection was released after the end of a two-day policy meeting, officials estimated that inflation would run at 2.6% next year, compared to 2.2% projected in September, and the unemployment rate will drop to 3.5% – close to Does not exceed full work.
As a result, officials in the median projected to press the benchmark Fed gasoline will increase from the current zero level to 0.90% at the end of 2022.
It will start the saving cycle that will see the increase in the Fed policy level.
To 1.6% in 2023 and 2.1% in 2024 – approaching but never exceeded that level would consider limiting economic activities.
In the outline, outline, “soft landing” which is given officials hopes to increase, with inflation gradually subside for years to come while unemployed remains low in growing economies.
The first time this year, the central bank said, will now depend on the labor market pathways expected to continue to increase in the coming months.
Drop from a policy statement is inflation reference as “Meanwhile,” with The Fed instead of acknowledging that the price increase has exceeded the 2% target “for some time.” Annual inflation has run more than double the Fed’s target in recent months.
To open the door to assess the increase, the Fed announced it doubled the “pointed,” pace, “which bought the bonds that put it on the lane to end the program, initially started at $ 120 billion per month, in March.
US stocks were added to a simple increase After the release of the statement and projection while the results on the Treasury Securities rise.
The dollar strengthened against a basket of the main trading partner Depending on some further improvements in the labor market, new policy projections leave a little doubt that the borrowing costs will rise next year, absence of the main economic surprise.
All 18 policy makers show at least a single interest rate increase will be appropriate before the end of 2022.
All told, new projections and the policy statement began to describe the Bank Sentra plan l to “normalize” monetary policy after almost two years of extraordinary efforts for economic nurses through a pandemic impact.
It was still ongoing, the Fed admitted, with the new Omicron Coronavirus variant adds to uncertainty about the economic road.
But the Fed, at this time, said economic growth was still expected to be 4.0% next year, an increase of more than 3.8% projected in September and more than double the underlying economic trend.
The Jerome Powell Fed seat is scheduled to hold a press conference at 2:30 a.m.
Est (1930 GMT) to describe the new policy statement and answer questions about the economic outlook for the central bank.