The Fed tells not to worry about inflation, as it has to finish its job

In Kürze

Chair Powell used the January meeting to stress again that the Fed’s job to sustain the recovery is not finished. Rates will remain near zero for a prolonged period and asset purchases will continue at the current pace. He strongly dismissed any possibility of a tapering anytime soon.

Highlights:

  • The January meeting was a very quiet one, as expected. The current stance and long-term strategy were reaffirmed.
  • Risks to the economy are mostly in the short term and limited to the sectors most affected by the pandemics. Expectations of a rebound were confirmed.
  • Fears of surging inflation were dismissed, as short-term volatility will be offset by the persistence of deflationary factors. Therefore, and given the still large level of unemployment, it is far too early to contemplate any tapering in asset purchases.
  • The Fed does not appear worried about the strong equity prices nor sees any significant vulnerabilities in financial markets.

Download the full publication below

The Fed tells not to worry about inflation, as it has to finish its job
Picture

© Generali Investments, alle Rechte vorbehalten. Diese Webseite wird von Generali Investments zur Verfügung gestellt und gilt als Marketingkommunikation und Finanzwerbung in Bezug auf die Produkte und Dienstleistungen der folgenden Unternehmen der Generali Gruppe: Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. und Generali Investments Holding S.p.A. (im Folgenden zusammengefasst Generali Investments). Darüber hinaus kann die Webseite Marketingkommunikation und Finanzwerbung für Produkte und Dienstleistungen von Unternehmen enthalten, die Teil der von Generali Investments Partners S.p.A. Società di gestione del risparmio koordinierten Plattform sind, insbesondere von Infranity, Sycomore Asset Management, Aperture Investors LLC, Plenisfer Investments SGR, Lumyna Investments, Sosteneo Infrastructure Partners SGR, Axis Retail Partners S.p.A. und Generali Real Estate S.p.A. Società di Gestione del Risparmio.