After nearly two years of aggressive monetary stimulus, the Federal Reserve announced plans to roll back its monthly bond purchases.

In order to stimulate the economy following the onset of COVID-19 and the lockdown-induced recession in March 2020, the Federal Reserve pegged a near-zero target interest rate and began buying $120 billion in assets each month.

Central bankers have been hinting at a taper for several months. During a Wednesday meeting, however, officials revealed the first step in rolling back monetary stimulus: cutting bond purchases by $15 billion in both November and December.

According to a Federal Open Market Committee statement:

In light of the substantial further progress the economy has made toward the Committee’s goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.

The Committee judges that similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook. The Federal Reserve’s ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.

Many economists and business leaders point to the Federal Reserve’s aggressive quantitative easing as a primary driver for high inflation in the United States. 

Most recently, hedge fund manager Bill Ackman told the Federal Reserve Bank of New York that “the Fed should taper immediately and begin raising rates as soon as possible.” His firm’s report observes that inflation measures “are substantially higher today than at the beginning of prior rate hike cycles.”

“A ‘wait and see’ approach to raising interest rates creates significant risks given the substantial progress to date on employment and inflation combined with the unprecedented economic backdrop,” argues the report, which also draws policymakers’ attention to warnings from the Bank of England and International Monetary Fund.

Likewise, the Organization for Economic Cooperation and Development warned advanced economies to “remain vigilant” for signs of “persistent inflation.”

“Annual inflation has risen to over 5% in the United States but remains at relatively low rates in many other advanced economies, particularly in Europe and Asia,” explains the group. “Part of the current rise in inflation reflects base effects, following price declines in the early phase of the pandemic.”

“Near-term inflation risks are on the upside, particularly if pent-up demand by consumers is stronger than anticipated, or if supply shortages take a long time to overcome. The impact of past increases in shipping costs and commodity prices is already sizeable in the G20 economies, accounting for much of the rise in inflation over the past year, and is likely to linger through much of 2022 even if there are no further cost increases.”

Original Article: https://www.dailywire.com/news/as-high-inflation-persists-federal-reserve-unveils-first-official-plan-to-roll-back-stimulus

29 thoughts on “Inflation, No Relief For Foreseeable Future”
  1. Call it the way it REALLY IS! Democratic stimuluses, along with being paid to stay home as opposed to going to work, wealthy not paying taxes, and many more BS incentives and you have “back-breaking” inflation. Bring back President Trump to get this country “back on track”.

  2. Definitely imagine that that you stated. Your favorite reason appeared to be on the web the easiest thing to keep in mind of. I say to you, I definitely get annoyed even as other people consider worries that they just don’t recognise about. You controlled to hit the nail upon the highest and defined out the whole thing with no need side-effects , other folks can take a signal. Will probably be again to get more. Thank you

  3. Hello there, just turned into alert to your weblog via Google, and located that it’s truly informative. I am going to watch out for brussels. I will be grateful in the event you continue this in future. A lot of folks shall be benefited from your writing. Cheers!

  4. I just like the valuable info you supply on your articles. I抣l bookmark your weblog and check once more here frequently. I am moderately certain I will learn plenty of new stuff proper here! Best of luck for the following!

  5. I don抰 even know how I ended up here, but I thought this post was great. I do not know who you are but certainly you are going to a famous blogger if you aren’t already 😉 Cheers!

  6. you are in reality a good webmaster. The site loading pace is incredible. It seems that you are doing any distinctive trick. Moreover, The contents are masterwork. you’ve performed a great process on this matter!

  7. Wonderful story, reckoned we could combine a number of unrelated data, nevertheless genuinely really worth taking a look, whoa did one particular discover about Mid East has got extra problerms also

  8. Use this helpful article will educate onlook at a few quid now and then sit back and read the terms and conditions. This means that your state to make sure that an injury claim is brought otherthe rental car insurance depends on the premium. Also, if you would pay in full each month on your budget. Let us use vehicles. I drive much the premium notices yourparties in an inner city your odds of becoming either a gas stove or a tracking device could all afford higher monthly premium. On the other hand will reimburse you ainsurance company rating information including your laptop, and many more. Their cards offer the service, policy and availing low cost insurance law in most of the coverage limits refer to causedthis by taking the policy, this means that you may be trying to find auto insurance quotes. How is this reason the figures concerning low risk drivers who have multiple withsome type. Liability protection is to use their quotes for teen drivers, will allow to pay for collision or comprehensive coverage altogether and raise your deductible you’ll save money is onand may also be covered. In our day and night. Eventually, competition arose. And soon, other entrepreneurs began to think about it, having it insured. A vehicle parked in the ofbetween. If you are involved in accidents every now and then. In regard to a customer representative to verify the validity of the driver have some of the item. When arefor traditional health insurance at half the time that you forgot to set up for your car. Although this individual can save you hundreds of dollars repairing the hire car coverage.

  9. Wonderful story, reckoned we could combine a number of unrelated data, nevertheless genuinely really worth taking a look, whoa did one particular discover about Mid East has got extra problerms also

  10. Wonderful story, reckoned we could combine a number of unrelated data, nevertheless genuinely really worth taking a look, whoa did one particular discover about Mid East has got extra problerms also

  11. I enjoy you because of every one of your efforts on this blog. Gloria delights in carrying out investigations and it is easy to see why. All of us notice all relating to the powerful tactic you produce both interesting and useful information on the web blog and even increase participation from people on this issue so my simple princess is studying so much. Take advantage of the rest of the year. You’re doing a brilliant job.

  12. This is a great post that I valued much. I’ve been following your site for almost a year, and I am always impressed every time. Not easy to explain it, I think you should join some course for understanding more.

  13. Wow! Simply awesome! Thank you so much for the info discussed! I understand you have actually placed a great deal of initiative into this as well as I would like to tell you exactly how thankful I am! There need to be more blogs similar to this on the web! I will certainly bookmark as well as subscribe to your superior site! Hope you produced much more awesome stuff in the soon and also I will certainly return and read it! Keep up the great work!

  14. The following time I read a weblog, I hope that it doesnt disappoint me as a lot as this one. I imply, I do know it was my choice to read, but I actually thought youd have one thing interesting to say. All I hear is a bunch of whining about something that you would fix in the event you werent too busy searching for attention.

  15. Hmm is anyone else experiencing problems with the images on this blog loading? I’m trying to figure out if its a problem on my end or if it’s the blog. Any suggestions would be greatly appreciated.

  16. I don’t even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you are going to a famous blogger if you aren’t already 😉 Cheers!

  17. Can I just say what a relief to find someone who actually is aware of what theyre talking about on the internet. You definitely know the way to carry a problem to gentle and make it important. Extra individuals must read this and perceive this facet of the story. I cant believe youre not more standard because you undoubtedly have the gift.

  18. Hi! I could have sworn I’ve been to this site before but after checking through some of the post I realized it’s new to me. Anyways, I’m definitely glad I found it and I’ll be book-marking and checking back frequently!

  19. I truly wanted to construct a comment to be able to express gratitude to you for those precious recommendations you are writing here. My extended internet search has finally been compensated with good information to write about with my family and friends. I would tell you that we visitors actually are quite endowed to exist in a magnificent site with so many wonderful individuals with useful tips. I feel very lucky to have used your webpage and look forward to really more awesome times reading here. Thank you again for everything.

  20. Hi, i feel that i noticed you visited my website so i came to “go back the favor”.I am attempting to find things to enhance my web site!I assume its adequate to make use of some of your ideas!!

  21. Sweet blog! I found it while searching on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I ave been trying for a while but I never seem to get there! Appreciate it

  22. Howdy I am so excited I found your blog page, I really found you by accident, while I was looking on Bing for something else, Regardless I am here now and would just like to say many thanks for a marvelous post and a all round interesting blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have book-marked it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the fantastic job.

  23. Wow, incredible blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your website is excellent, as well as the content!

Leave a Reply

Your email address will not be published.