Market updates and forecasts

从ForexMart获得最新经济新闻,包括金融市场,中央银行政策宣告,财务指标,和影响这个银行的其他相关新闻的更新.

免责声明:   ForexMart不提供投资建议,所提供的分析不应被解释为对未来结果的承诺。

December 2020 US Federal Reserve meeting


十二月, 17 2020
watermark Economic news

The results of the last US Federal Reserve meeting this year were published yesterday evening.


The regulator, as expected, kept the key rate (fed funds rate) unchanged in the range of 0-0.25% per annum. All 10 members of the Open Market Committee (FOMC) voted in favor of this decision.


Monetary policy parameters


The regulator noted that the rate will remain within this target range until the labor market reaches its maximum employment and inflation approaches the level of 2% or higher. The Fed also stressed that monetary policy will remain stimulating and will depend on the current situation in the US economy.


The QE program (buyout of government and mortgage bonds) will continue, at least in the current volumes – $120 billion per month. In addition, REPO transactions will be carried out.


FOMC Forecast


The average forecast of FOMC participants assumes that the key rate will remain at the level of 0.1% until the end of 2023, with a subsequent increase in the rate to 2.5% in the long term.


The forecast for the US GDP for 2021 has been revised upward, implying an economic growth of 4.2%. At the previous meeting in September, the regulator expected a 4% growth. The forecast for unemployment was also improved (from 5.5% to 5%) and for inflation (from 1.7% to 1.8%).


At the same time, the Fed's target for inflation is 2% per annum, and for the unemployment rate – about 4-5%. Consumer inflation (CPI) in November remained at 1.2% per annum, unemployment fell from 6.9% to 6.7%.


Fed Chairman Jerome Powell's Speech


During his speech, the head of the regulator stressed that the Covid-19 pandemic caused huge damage to the US economy, which still remains below the level observed before the crisis. At the same time, Powell assumes that the US economy will start to grow strongly in 5-6 months. However, until that time, the risks are very high and the need for more active fiscal stimulus is more urgent than ever. 


Recall that at the moment, the Congress is agreeing on a cut-down «republican» version of the new aid package of about $900 billion.


Implications for markets


The reaction of the American stock market to the results of the meeting was moderate, as the regulator did not present any surprises. However, the US dollar reacted with further decline, continuing to weaken across the entire spectrum of the market.


In general, the Fed's statements reflected the regulator's readiness to actively financially stimulate the economy in the fight against the consequences of the pandemic, as well as to adjust monetary policy if necessary.


反馈

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
风险提示:
外汇本质上有高度的投机性和复杂性,可能并不适合所有投资者。 外汇交易可能会带来重大的收益或损失。 因此,建议您不要承担无法承受的损失。 在使用ForexMart提供的服务之前,请确认外汇交易相关联的风险。 必要时寻求独立的财务意见。请注意,过去的业绩和预测都不是未来结果的可靠指标。
外汇本质上有高度的投机性和复杂性,可能并不适合所有投资者。 外汇交易可能会带来重大的收益或损失。 因此,建议您不要承担无法承受的损失。 在使用ForexMart提供的服务之前,请确认外汇交易相关联的风险。 必要时寻求独立的财务意见。请注意,过去的业绩和预测都不是未来结果的可靠指标。