Yesterday, the Federal Reserve's Open Market Committee (FOMC) meeting began, which will end today, concluding with its latest statement on monetary policy, as well as a press conference with Fed Chairman Jerome Powell. During the year, the Fed holds eight regularly scheduled meetings, as well as any other meetings that are necessary. It is during these meetings that the members of the Federal Reserve System will strengthen their monetary policy and announce this to the public in a written statement, as well as announce it at a press conference that will take place after the meeting.
It is quite clear that the regulator will not accelerate the timing of rate hikes, instead, they will discuss their current asset purchases worth $ 120 billion. Many analysts believe that there is no need to continue buying mortgage-backed securities in an extremely overheated housing market. According to the Global Property Guide, sales of new homes increased by 43.2% year on year despite the pandemic. Demand continues to exceed supply, while sales of existing homes rose by 10.5% year-on-year.
According to the assumptions of American economists at Citibank, the FOMC meeting, which will be held today on July 28, will generally be neutral. At the same time, the Fed is likely to announce the possibility of a new wave of COVID-19, maintaining optimism and controlling the growth of inflation. Their general conclusion is that they tend to weaken the strength of the US dollar. At the same time, the US dollar is still near the highest level since the beginning of April.
Given the recent increase in new cases of coronavirus, it seems unlikely that the Fed will make any major changes to its current monetary policy.
