second take
BLOOMBERG OPINION: Fed shifts but not quite enough
There is still a disconnect between what is happening in the economy and what the US Federal Reserve is saying
20 June 2021 - 17:12
The US Federal Reserve has come under pressure to shift its thinking on inflation and monetary policy. A correction was indeed overdue, and at last week’s meeting of its policy-making committee the Fed budged, but not quite enough.
The central bank held interest rates at zero and announced no plans to taper its $120bn-a-month bond buying programme. But its closely watched “dot plot” showed a majority of its officials now projecting at least one rise in interest rates in 2023. Financial markets took note, and yields moved up a notch...
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