In the face of a deluge of mixed economic data over recent weeks raising questions on United States’ route towards a stable economic recovery, the US Fed had kept its benchmark interest-rate near-zero and vowed to continue its bond repurchase program until a “substantial” scale of economic progress on Wednesday, pointing towards a promise of long-term fiscal aid aimed at insulating the US economy from a pandemic-induced slide.
Apart from that, latest remark from the US Fed on Wednesday’s FOMC minutes comes over the heels of a horrendous outlook on US retail sales ahead of the holiday season, as US retail sales fell by 1.1 per cent last month on an adjusted basis compared to the same time a year earlier, while a revised October data had unveiled that the US retail sales dipped 0.3 per cent in October instead an earlier report of a 0.1 per cent rise.
Fed Chair Powell commits to policy easing to address economic slowdown
On top of that, followed by the two-day meet of US Fed policymakers, US Federal Reserve Chair Jerome Powell said in a post-FOMC minutes interview with the reporters that the US Central Bank’s set of fiscal tools might not be able to address the country’s most pressing requirements at a time when a recent pandemic resurgence had been wreaking havocs on millions of American households and small-scale businesses.
In tandem, adding that US small-scale businesses had been taking the weightiest headers from the pandemic’s fiscal consequences, Fed Chair Powell was quoted saying in an interview with the reporters following the two-day policy meet, “The parts of the economy that are weak are the service-sector businesses that involve close contact.
Those are not being held back by financial conditions, but rather by the spread of the virus” that is now intensifying across the country. ” Earlier in the day, media headlines had revealed that the top bipartisan lawmakers in the US Congress had been making progresses towards unveiling a $900 billion worth of fresh stimulus package.