The Federal Reserve‘s effort in recent years to provide forward guidance on the likely path of interest rates has helped bolster the U.S. economic recovery, Fed Governor Jerome Powell said Friday.
“In my view, forward rate guidance has helped reduce medium and longer-term interest rates, and by doing so has provided meaningful support for the economy,” Mr. Powell said in remarks prepared for delivery at an Institute of International Finance conference in London.
In its April policy statement, the Fed said it expects to keep its benchmark short-term interest rate near zero for a “considerable time” after its bond-buying program ends.
The Fed began to pare its monthly bond purchases in December. They currently total $45 billion a month. Mr. Powell said Friday that the central bank is on track for the program to “come to an end in the fourth quarter of this year.”
wsj.com
“In my view, forward rate guidance has helped reduce medium and longer-term interest rates, and by doing so has provided meaningful support for the economy,” Mr. Powell said in remarks prepared for delivery at an Institute of International Finance conference in London.
In its April policy statement, the Fed said it expects to keep its benchmark short-term interest rate near zero for a “considerable time” after its bond-buying program ends.
The Fed began to pare its monthly bond purchases in December. They currently total $45 billion a month. Mr. Powell said Friday that the central bank is on track for the program to “come to an end in the fourth quarter of this year.”
wsj.com
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