With just a few hours left, the FOMC meeting will take place. Analysts expect the Fed to maintain the United States (U.S.) monetary policy early Thursday morning.
This is due to policymakers finding that the growing pandemic is having a major impact on the economy and the latest attention is focused on the distribution of larger-scale vaccines and new stimulus packages from the government.
In recent meetings, the Fed has made significant changes in policy. The Fed has used interest rate instruments and bond purchases as measures to boost the economy.
However, economic data since the last meeting in December has disappointed the market and analysts believe policymakers are likely to set aside any monetary policy easing measures.
Oxford chief economist Kathy Bostjancic said the economy is expected to grow rapidly in the second quarter as more residents will be vaccinated, people will be able to travel and spend more easily and the midwife's administrative expenses can go well.
About 25 million people have received at least one of two doses of the vaccine since last Sunday and Joe Biden hopes to increase the daily dose to 1.5 million a day. In addition, Biden has also applied for additional assistance worth $ 1.9 trillion to speed up the vaccination process and stimulate the economy.
For example, the market is of the view that it will maintain its ‘dovish’ tone at this point by stating that inflation remains under the 2% year target.
