US economy almost ready for less stimulus, Fed official says | The Guardian Nigeria News

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The United States is nearly ready for the central bank to pull back on its stimulus, and the high inflation may soon retreat, a Federal Reserve official said Tuesday.

The Fed last month signalled it would “soon” be ready to begin the process of ending its massive monthly purchases of bonds and other securities intended to help the country weather the Covid-19 downturn.

In a speech to the Institute of International Finance, Fed Vice Chair Richard Clarida said the world’s largest economy was nearing completion of the “substantial further progress” test the central bank has set to determine when to back off its stimulus policies.

“I myself believe that the ‘substantial further progress’ standard has more than been met with regard to our price-stability mandate and has all but been met with regard to our employment mandate,” Clarida said.

He noted that members of the bank’s policy-setting committee last month overall agreed that unless the economic situation…



Source: Guardian Newspaper