+24 C°
Traffic jam:   2

Progress in the U.S. economy again

10 August 2021
2 min.
Progress in the U.S. economy again

Progress in the economy

Two Fed officials noted progress in the US economy on Monday, predicting when the central bank will begin cutting bond purchases and raising the benchmark interest rate.

On Monday, US stock indices were affected by statements from two Fed officials, who hinted to investors that the Fed's quantitative easing policy will begin to be cut sooner.

Additional negative factors were fears over the risks of COVID-19 Delta strain spreading and a lower GDP growth estimate for China on Wall Street.

As a result, the Dow Jones and S&P 500 indices interrupted their two-day gains, declining 0.3% and 0.09% on Monday.

The Fed has kept benchmark interest rates near zero since last year and is buying $120bn worth of assets a month. The central bank has pledged to maintain this pace "until substantial further progress" has been made towards reaching the 2% maximum employment and inflation target in the US and temporarily slightly exceeding this level.

Fed could start cutting asset purchases as early as September/October

On Monday, Atlanta Federal Reserve Bank President Raphael Bostic noted strong growth in new off-farm jobs in July and said that if this trend continues for a month or two "it puts the Fed on the path to reduce asset purchases from October through December or sooner."

Boston Fed President Eric Rosengren also said on Monday that the central bank could begin reducing quantitative easing policy even before October.

The Fed's next policy meeting is scheduled for 21-22 September and there's a chance that based on indicators of strong economic growth the central bank could announce the timing and size of its asset purchase cuts. Interest rate hikes are not expected before the end of 2022. The Fed's decision to change policy will also be influenced by the spread of the Delta strain.

Fed about inflation

On Wednesday and Thursday there will be government data on US inflation in July.

Fed President Thomas Barkin said on Monday that he sees the economy making progress towards the central bank's goals.

Barkin said that the high inflation seen this year may have met one of the Fed's criteria for raising rates, although there is still room for the labour market to recover before rates have to rise.

Persons3 and Companies2 in the news

President of the Federal Reserve Bank of Richmond
1 place
President of the Federal Reserve Bank of Boston
2 place
President and CEO of the Federal Reserve Bank of Atlanta
3 place
Dow Jones
1 place


Rating companies
173 Mention
Dow Jones
130 Mention
57 Mention
51 Mention
45 Mention
44 Mention
35 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year