It is quite surprising to see the Federal Reserve still be optimistic about the US Economy, despite the rather large amounts of money they had to give to the economy. Interestingly, even with the stimulus package still under a deadlock, most of the central bankers have been overly optimistic. The Federal Open Market Committee is going to have its final meeting on the coming Thursday when they would be discussing the contraction of the US Economy. The other topic of discussion would be the ousting of President Trump and the initiation of Joe Biden as the next President of the USA.
The FOMC and the US Economy
Jerome Powell, the chairman of the Feds would definitely steer clear from making any statements from a purely political standpoint. But, they would talk about how the economy is going to fare in the next year- with vaccines getting authorization in the States. Nonetheless, it doesn’t seem very clear as to what the statement would be. Steven Englander from Standard Chartered has already spoken about how the situation seems to be pretty difficult for FOMC to analyze. The entire situation is going to look incredibly more complex in the coming six months.
One of the major weights hanging over the head of the US Economy is the failure to produce another stimulus package. Despite the continued insistence of Jerome Powell and the FOMC towards the Congress to bring out a stimulus package, things have consistently gone wrong.
While Powell is sure to organize an interview post the meeting on the US Economy, there seems to be very little that he might be able to do. The gap between the Republicans and the Democrats seem to be insurmountable- as they say.