Follow U.S. investment immigration and stay updated on U.S. economic developments: Federal Reserve (Fed) Governor Jerome Powell stated on Monday (November 4) that U.S. monetary policy is likely to remain highly accommodative for some time.
Powell stated that the timing of when the Federal Reserve will begin to taper its asset purchases is highly uncertain and depends primarily on economic developments. The Federal Reserve is most likely to eventually tighten policy once the economic recovery is more stable, while communicating more effectively and transparently with the market.
He also noted that Federal Reserve policymakers are committed to making communication regarding policy goals and intentions as clear as possible to the market.
Regarding the impact of the Federal Reserve tapering its asset purchases, Powell stated that tapering and the eventual tightening of policy by the Fed will not necessarily harm emerging market economies, though the policy could lead to capital inflows into emerging economies and pressure on asset prices. Domestic developments within emerging economies may be a more significant factor influencing price and capital flow pressures, and there are currently no signs of widespread instability in emerging market financial systems.