Dovish Fed Upbeat About Economic Recovery Despite Surge in Coronavirus Cases

Source: The Federal Reserve

The Federal Reserve chose to keep interest rates and bond-buying unchanged but remained optimistic the economic recovery is on track despite the rise in the Covid cases.

SPY is up +0.21% on premarket, DXY is down -0.25%.

• The Fed said it would reduce the $120 billion in monthly bond purchases once it sees strong payroll numbers, saying the current job market has “some ground to cover.”
• Fed’s Chair Jerome Powell downplayed that the renewed infections by the Delta variant will hamper economic recovery, expecting progress on inoculations and policy support to counter impacts.
• The central bank still maintained its stance that the uptick in inflation is transitory, even as it kept the overnight benchmark rate near zero.