Fed policymakers stick to status quo on policy outlook, minutes reveal

Federal Reserve policymakers were sticking with the current rates and bond purchases, the minutes of the central bank’s meeting showed on Wednesday. This resolve is seen as the central bank’s support for economic recovery as inoculations continue to roll across the country.

The released meeting minutes on Wednesday showed the decision of the Federal Open Market Committee during its Dec. 16 meeting to hold on to its benchmark rate in a range of  0% to 0.25% and the pace of bond purchases at a $120 billion monthly pace.

Oddly, some Fed members were signaling in recent days that the bond purchase programme could be recalibrated this year. However, the minutes also indicate that the eventual tapering of bond purchases would be gradual.

Also in the minutes, Fed members predicted a 4.2% economic growth in 2021. This upbeat forecast is driven by a coronavirus vaccine-led rebound in the latter half of the year.