Bank of America breaks down the next 2 steps the Fed will take to stimulate the coronavirus-addled economy
The Federal Reserve is poised to implement stricter forward guidance and yield-curve control in September as the US economic rebound faces new challenges,The central bank's"one-two punch" will focus on keeping rates near zero for a prolonged period, both through guidance statements and yield-curve control focused on short- to medium-term Treasury bonds.
The central bank will likely announce rates will remain near zero for a specific period of time or until price stability is achieved, the team wrote. Yield-curve control, which allows central banks to target certain rates through the purchase and sale of bonds, will likely focus on short- and medium-term rates and target an upper limit of 0.25%.
Minutes from next week's Federal Open Market Committee meeting are sure to shed light on how the central bank will move forward after implementing unprecedented monetary relief. Forward guidance has already emerged from Fed officials, with chairman Jerome Powell hinting in several press conferences that low rates aren't going away anytime soon.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Bank of America ups copper forecast as red metal rises for a second straight monthCopper prices closed out a second consecutive month of gains on Friday, driven in part by hopes for a recovery and further fiscal and monetary stimulus from China, its number one consumer.
Weiterlesen »
Bank Of America Commits $1 Billion To Support Economic Opportunity After Pandemic, ProtestsBank of America said on Tuesday morning it will make a $1 billion commitment help local communities address widening economic and racial inequality brought on by the pandemic.
Weiterlesen »
Israeli defence chief says he's preparing for consequences of West Bank annexationsIsraeli Defence Minister Benny Gantz said on Monday he ordered the military to step up preparations for Israel's pending annexation of parts of the West Bank, a plan that could stoke Palestinian violence.
Weiterlesen »
Mark Cuban and bank CEO launch PPP loan forgiveness website - Business InsiderYou can fill out the PPP loan forgiveness application on the Small Business Administration's website, but it's 11 pages and relatively convoluted. So mcuban wanted to make it simpler to apply
Weiterlesen »
China central bank issues guidelines on boosting support to small firmsChina's central bank on Monday issued comprehensive guidelines on increasing financial support to small and medium-sized firms, asking banks to shift business focus from property and local government financing vehicles to small companies.
Weiterlesen »
Embraer negotiating $600 million bank financing for exportsBrazilian planemaker Embraer SA , the world's third largest commercial jet builder, should obtain $600 million in credit lines from Brazil's state development bank BNDES and private banks in June, government sources said on Sunday.
Weiterlesen »