September 16, 2020
Fed latest publications
After announcing the changes to the Longer-Run Goals and Monetary Policy Strategy in the intermeeting period, the FOMC followed up with a very dovish statement at the September meeting.
The Fed released its updated Statement on Longer-Run Goals and Monetary Policy Strategy, which reflect changes in the economy over the past decade and explains how policymakers are planning to conduct monetary policy. The statement also enhances transparency, accountability and effectiveness of monetary policy.
August 19, 2020
FOMC Minutes July 28-29th: Fed narrows its focus on policy guidance and asset purchases
Fed uses July meeting to discuss policy options as the strategy shifts from “stabilization to accommodation”. Most members continue to view the outlook as extremely uncertain.
July 29, 2020
FOMC Meeting July 28-29: Dovish tone signals more accommodation for an extended period
As expected, the Fed left interest rates unchanged and reaffirmed its commitment to, at a minimum, maintaining the current pace of asset purchases while also defending its expanded use of its lending powers until the economy is on the road to recovery.
The June 9-10 FOMC meeting statement provided a very dovish perspective on the economy. It reinforced the severe damage from Covid-19 to both economic activity and the labor market.
It is hard to imagine that Hollywood could have produced a more dramatic script. There have been more than 1.8M confirmed Covid-19 cases in the United States and 6.4M worldwide. Tragically, there have been almost 400K Covid-related deaths.
April’s FOMC statement, released today, confirms that the Federal Reserve (Fed) will continue with its aggressive strategy to deal with the economic fallout and downside risks.
In response to the COVID-19 pandemic, the Fed has announced sweeping conventional and unconventional actions. Based on the uptake in the Fed offerings to date and our expectations for the path economic activity, the Fed’s balance sheet is poised to rapidly increase to around $8Tn, before stabilizing around that level.