Fed keeps policy consistent as Biden inches closer to triumph

 Fed keeps policy consistent as Biden inches closer to triumph
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© Reuters. FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington © Reuters. SUBMIT IMAGE: Federal Reserve Board building on Constitution Opportunity is pictured in Washington

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By Howard Schneider, Ann Saphir and Jonnelle Marte

WASHINGTON (Reuters) – The Federal Reserve kept its loose monetary policy undamaged on Thursday and vowed again to do whatever it can in coming months to sustain a U.S. financial recovery losing speed amidst a dispersing coronavirus pandemic and dealing with uncertainty over a still-undecided governmental election.

The economy is still growing but “I would not say that anybody is feeling comfy about this,” Fed Chair Jerome Powell said in a press conference after the Fed’s latest two-day policy conference. “We have actually survived the first 5, 6 months of the growth better than anticipated … However we have to be simple where we are relative to this illness. It has actually not gone away.”

The short-term outlook is likewise clouded by doubts about where fiscal policy may be headed in coming weeks, or how smooth a possible shift would be between an inbound Democratic administration led by Joe Biden and a lame-duck administration led by Republican President Donald Trump that will still hold sway over approaching choices on funding the federal government and extending the U.S. central bank’s emergency programs.

Powell said the Fed is only now beginning to think about whether it n

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Redak staff

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