By Yasin Ebrahim
Investing.com - Federal Reserve policymakers continued to back the status quo of near-zero rates and bond purchases to support the recovery as vaccines are rolled out across the country, according to the minutes of the central bank's last policy meeting released Wednesday.
At the conclusion of its previous meeting on Dec. 16, the Federal Open Market Committee kept its benchmark rate in a range of 0% to 0.25% and the pace of bond purchases at a $120 billion monthly pace.
In recent days, there has been signalling from some Fed members that the bond purchase programme could be recalibrated this year.
"I am hopeful that in fairly short order we can start to recalibrate [the $120 billion monthly bond purchases]," Atlanta Fed President Raphael Bostic said in an interview with Reuters on Monday.
Still, the overarching narrative from the central bank members continues to be one of support, particularly if the economy were to take a turn for the worst as the virus continues to spread.
The recovery has, however, been given a shot in arm following the $900 billion fiscal stimulus deal agreed in December.
At its meeting last month, Fed members estimated the economy would grow by 4.2% in 2021, as a bumpy first quarter is expected to be offset by a strong vaccine-led rebound in the back half of the year.
There was also broad consensus among most committee members to let inflation run above the 2% target as the potential risk of runaway inflation - led by pent-up demand amid easing virus restrictions - is unlikely as near-zero rates give the fed plenty of room to maneuver.