Federal Reserve to announce policy decision at 2 pm ET

The Federal Reserve will announce its newest policy decision this afternoon. 

Although the Fed is predicted to maintain rates of interest pinned at near-zero, the central financial institution may offer some clues on when it will slow its aggressive asset purchase program.

Since the depths of the pandemic, the Fed has been snatching up $120 billion a month in U.S Treasuries and company mortgage-backed securities.

With inflationary pressures rising and the financial system on the trail to restoration, some Fed officials said they were eager to have discussions on paring again the tempo of the so-called quantitative easing program.

But the Fed stays involved concerning the restoration within the labor market, as May jobs data confirmed the financial system remains to be 7.6 million jobs wanting pre-pandemic ranges.

The policy-setting Federal Open Market Committee will launch an announcement at 2 p.m. ET, alongside a set of financial projections mapping out forecasts for financial indicators like inflation and unemployment.

Fed Chairman Jerome Powell will then be pressed on the central financial institution’s policy stance at a press convention at 2:30 p.m. ET.

Brian Cheung is a reporter protecting the Fed, economics, and banking for Yahoo Finance. You can observe him on Twitter @bcheungz.

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