The Federal Open Markets Committee (FOMC) of the FED indicated that certain economic indicators are evolving favorably, so there could be changes in their financial policies in the face of the COVID-19 pandemic.
The US Federal Reserve (FED), the main entity in charge of the country’s monetary policies, would be planning to make new changes to the measures that it originally applied to support the local economy in the framework of the COVID-19 pandemic, considering the reduction of the investment earmarked for the purchase of some assets.
This news got revealed in the meeting held by the Federal Open Markets Committee (FOMC) on July 27 and 28, in which most officials agreed that expectations about inflation levels have been fulfilled and that the unemployment rate fell to more favorable levels.
Reduction in Purchase Rates is a Relief
About the purchase of bonds by the FED, most of the participants considered that there were benefits by reducing the rates with which the agency has been acquiring them, although there were officials who had shown their interest in reducing these figures, especially from mortgage-backed bonds.
Regarding bank interest rates, at the moment there were no new announcements from the committee. They will remain close to zero at least until 2022 or 2023 remains in force, depending on how the others evolve. indicators.
Stablecoin Concerns
Another point on which the committee discussed had to do with the flourishing seen among stablecoins in the financial market, noting that these types of assets lack structural maturity and do not have a detailed regulatory framework to address their features.
Some of these participants highlighted the fragility and general lack of transparency that usually take part in stablecoins, the importance of monitoring them closely, and the need to carry out a correct regulatory framework to address any risks to financial stability associated with such products.
The recent statements by the committee stand out in light of comments made by Fed Chairman Jerome Powell, who assured that the launch of a digital dollar would make people look less for operating stablecoins in the market.
However, regarding this issue, Powell highlighted that there is a real interest in working around the creation of a digital dollar, but the US government is not interested enough in being the first nation to solve this matter.
He also highlighted that this cryptocurrency would have different features when compared to the digital yuan, given that the economic values and financial principles are totally different from those contemplated by the Chinese entities.
By Jenso Nuñez
