Containment of virus, economic data the key

Staying cautious: The Federal Reserve Board building in Washington. The Fed reaffirmed its commitment to sustaining stimulus to the US economy until it has recovered from the Covid-19 damage. — AFP

NEW YORK: Investors have received some reassurance that the Federal Reserve will not imminently reduce its support of the US economic recovery, but they expect the Fed to provide more concrete clues on a tapering of bond purchases in the months ahead.

At the conclusion of the US central bank’s latest policy meeting on Wednesday, Fed Chair Jerome Powell acknowledged the economy’s growth, but said there was not yet enough evidence of “substantial further progress” toward recovery to warrant a change in policy. The Fed has been purchasing US$120bil (RM492bil) of government-backed debt a month since June 2020, but is expected to reduce that as the economy improves.