(ConservativeInsider.org) – The Federal Open Market Committee (FOMC) typically meets eight times per year to discuss our nation’s economic outlook and monetary policy for the next few months. When COVID hit last year, they chose to slash federal lending rates to zero to give the economy a boost. But now, even with signs of recovery on the horizon, the FOMC is likely to keep the interest rates extraordinary low.
According to Andrew Hunter, the senior US economist at Capital Economics, there will likely be no major policy changes with the Federal Reserve at the Tuesday, April 27 FOMC meeting. Even while COVID-19 vaccines are allowing many Americans to get back to work, the Fed has made it clear they won’t be “spooked” by the current momentum of our workforce. However, this has led many to wonder about the potentially higher inflation rates coming this year.
Federal Reserve Governor Christopher Waller shared his own thoughts on the economy with CNBC:
"I think the economy is ready to rip," says Federal Reserve Governor Christopher Waller. He discusses his economic outlook for 2021 with @steveliesman. "I see inflation running 2.5% for the year." pic.twitter.com/GQUrUHX2RT
— CNBC (@CNBC) April 17, 2021
There’s no doubt Americans are more than ready for things to get back to “normal,” if there is such a thing. But, as our economy continues its slow recovery, the Federal Reserve is clearly waiting to raise interest rates until a full economic recovery has been made. So, for now, Americans who have the means to do so will continue to enjoy incredibly low interest rates on homes, cars, and other loan purchases.
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