“Advances in vaccinations will likely continue to reduce the effects of the health crisis (triggered by the Covid-19 pandemic) on the (US) economy, but the risks to the economic outlook have remained.” This is what we read in the minutes of the Fomc, the monetary policy arm of the Federal Reserve, relating to the last meeting of 15-16 June.
Of course, “the macro data relating to economic activity and employment have strengthened”. However, according to what emerges from the minutes, most of the exponents of the FOMC pointed out that the US economy has yet to hit the definition of “further significant progress” that the Fed has established to justify a possible change in monetary policy.
“The participants (from the FOMC) agreed on the need to continue to monitor the progress of the economy towards the Commission’s objectives, and to start discussing plans to adjust the path and composition of asset purchases (Quantitative easing). In addition, “the participants reiterated their intention to give indications (on possible changes in monetary policy) well in advance of the announcement with which the reduction in purchases will be communicated” of assets.