Fed holds last monetary policy meeting ahead of presidential elections

After this meeting, the Fed is expected to present its estimated economic forecasts until 2023

This Tuesday the Federal Reserve will hold its last monetary policy meeting prior to the upcoming elections to be held on November 3. After the meeting, the US central bank is expected to present its economic forecasts until 2023, and to respond to the uncertainty that is experienced by the global crisis.

As anticipated by Steve Englander, from the Standard Chartered bank, the members of the monetary policy committee belonging to the organization will have to expect “a slow (economic) reactivation, and a slow rise in inflation.”

Before the boreal summer, the Fed expected a drop in the United States GDP in 2020 of 6.5% and then rise 5% from a very low level in 2021 and 3.5% in 2020. As for unemployment, it expected a 9.3 % at the end of 2020, 6.5% in 2021 and 5.5% in 2022.

However, the August figures were better than expected with unemployment of 8.4%, up from the record of 14.7% in April.

This meeting takes place in the midst of tensions experienced in Congress between Democrats and Republicans on creating a new financial aid plan. For its part, the federation hopes that the congressmen will reach an agreement on the consolidation of a fundamental stimulus package for the benefit of families, companies, local communities and schools.

K.Villarroel

Source: eluniversal

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