Watch FOMC Rewind: What the Fed’s November 2021 Decision Means for You
The Federal Open Market Committee has started to slow its bond buying as the U.S. economy continues to strengthen. In its November 2021 meeting statement, the Federal Reserve said that strong policy support and progress on vaccinations have benefited the economy. While the sectors most adversely affected by the pandemic have improved in recent months, the summer’s rise in COVID-19 cases has slowed their recovery. Meanwhile, supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to sizable price increases in some sectors.
The path of the economy continues to depend on the course of the virus. Progress on vaccinations and an easing of supply constraints are expected to support continued gains in economic activity and employment. Considering the substantial further progress the economy has made, the Fed said that it will begin reducing the monthly pace of its net asset purchases.
The Committee kept the target range for short-term interest rates near zero and expects it will be appropriate to maintain this target until it meets the goals of maximum employment and price stability. The FOMC will continue to monitor new information on the economy and adjust their stance on monetary policy if needed.
What does this mean for you? Let’s rewind.
November 2021 FOMC Rewind
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The views expressed here do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco or of the Board of Governors of the Federal Reserve System.