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Fed Chairman Jerome Powell will face questioning via a virtual news conference Wednesday afternoon following the latest monetary policy meeting.
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The Fed will also provide its outlook for economic growth, inflation and unemployment.
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The Fed typically provides such forecasts quarterly, though it skipped doing so in March because the coronavirus outbreak had heavily clouded the outlook.
The projections also include each policymaker’s own forecast of when the Fed will raise its benchmark rate. Economists think most of the policymakers won’t project any rate hikes through 2022.
Powell will likely drive home the message that the economy remains in need of extraordinary help despite recent despite glimmers of a possible recovery, including a government report Friday that jobs were surprisingly added in May.
FED EXPANDS MAIN STREET LENDING PROGRAM TO ALLOW SMALLER, BIGGER LOANS
Since March, the Fed has slashed its benchmark short-term rate, bought $2.2 trillion in Treasury and mortgage bonds to inject cash into markets and rolled out several lending programs to try to keep credit flowing smoothly. Most analysts expect the Fed to pause for a while and assess the economic landscape before embarking on any further actions.
The Fed’s actions are widely credited with having helped fuel an extraordinary rally in the stock market, which has regained its pre-pandemic high after a dizzying plunge in March.
FED ECONOMIST ARGUES NEGATIVE INTEREST RATES NEEDED TO BOOST US ECONOMIC RECOVERY
Though the Fed could technically cut rates into negative territory, Powell has largely rejected negative rates as an option, saying they wouldn’t have much benefit and has pointed to Europe as an example.
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Still, there are additional steps the Fed can take. Most analysts expect that sometime in coming months the Fed will specify how long it’s prepared to keep short-term rates near zero and how much bond buying it will do to hold down longer-term rates.
The Associated Press contributed to this article.
