Current policy stance remains appropriate to foster further recovery

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The FOMC Meeting Minutes March 16-17 showed Wednesday that policymakers agreed that despite the improving economy, the United States is still a long way from the goals of the Federal Reserve.

Featured statements summarized by Reuters

“FOMC members noted that it would probably be some time before substantial progress on the targets is seen.”

“Participants agreed that the way forward remains highly uncertain with the pandemic still posing risks.”

“Given these risks, the current stance of monetary policy remained appropriate to foster a further recovery.”

“Several participants highlighted the importance of communicating progress well in advance of possible QE tapering; time would depend on the economy, the pace of progress.”

“Several policy makers pointed out that changes in the policy path should be based primarily on results, not forecasts.”

“Most members noted that they considered the risks to the outlook to be broadly balanced.”

“Members widely supported raising the counterparty limit on overnight reverse repurchases, with some participants saying they would support removing the limit entirely.”

“The Fed chairman noted that should downward pressure on overnight rates emerge, it might be appropriate to adjust administered rates at upcoming meetings or even between meetings.”

Market reaction

The US Dollar Index did not show an immediate reaction to this release and was last seen gaining 0.04% on the day at 92.34.

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