FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019.
The changing landscape may prompt Fed policymakers at their Dec. 15-16 meeting to describe in more detail their plans for the coming months.
Even on its own, Mnuchin’s decision to let several Fed emergency programs expire next month “will tighten financial conditions ... at the wrong moment,” said Krishna Guha, vice president of Evercore ISI.
With the looming end of the crisis programs, purchases of government bonds are now the main lever the Fed can pull to change credit conditions.
Firms nursed through the crisis by federal government grants or cheap Fed credit may find their businesses don’t bounce back to normal even as vaccinations make a full reopening of the economy safe.
Leah Millis, Steven Mnuchin’s, ”, Krishna Guha, Jason Thomas, Thomas
WASHINGTON, Reserve, Federal Reserve Board, REUTERS, U.S, Evercore ISI, QE, QE AS, Fed, Carlyle Group
Washington , U.S, COVID, United States