With interest rates expected to stay near zero through 2023, and the coronavirus still rampant nationwide, the Federal Reserve will likely need to turn toward unorthodox monetary policy tools this year. So reports Yahoo Finance.
While language in the COVID-19 relief bill would prohibit the Fed from reviving its emergency loan facilities that expired on December 31, central bankers may have to decide whether to open up some alternative if the economic outlook darkens.
The Fed has also signaled that it plans to continue to use quantitative easing and that it would permit inflation “moderately” above its traditional 2% target.
Read the full article from Yahoo Finance.