Money
High Inflation and the Outlook for Monetary Policy By Federal Reserve Governor Michelle W. Bowman
Federal Reserve Governor Bowman: "Inflation is much too high. Last year I noted that inflationary pressures associated with strong demand and constrained supply could take longer to subside than many expected. Since then, those problems have persisted and inflation has broadened, reaching the highest rate that Americans have faced in forty years. High inflation is a heavy burden for all Americans, but especially for those with limited means who are forced to pay more for everyday items, delay purchases, or put off saving for the future. I intend to support prompt and decisive action to lower inflation, and today I will explain how the Fed is pursuing this goal." more »
Study: Natural hazards Compound Covid-19 Impacts Disproportionately on Businesses Run by Minorities, Women and Vets
A report published in October 2020, offered an overview of the responses, but the authors of the new study sought to gain deeper insight into the role that specific factors played in determining a business’s resilience during the pandemic. "The team’s findings are based on responses from more than 1,350 businesses to a survey NIST and NOAA distributed from July to August in 2020. A third of those returning surveys were from underrepresented groups. "It is critical that we understand how climate events amplify existing social and economic vulnerabilities,” said Ariela Zycherman, a co-author of the paper in NOAA’s Climate Program Office. more »
GAO, COVID-19: Significant Improvements Are Needed for Overseeing Relief Funds and Leading Responses to Public Health Emergencies
Fast Facts: In our 9th comprehensive report on the COVID-19 pandemic, we provide updates on topics like pandemic emergency rental assistance and tax relief for businesses. In this report, GAO makes five new recommendations in the areas of emergency rental assistance, nutrition assistance, and tax relief for businesses. GAO is also designating the Department of Health and Human Services’ (HHS) leadership and coordination of a range of public health emergencies as high risk. This designation is in keeping with long-standing efforts to identify federal programs needing transformation, and to help ensure sustained executive branch and congressional attention so the nation is prepared for future emergencies. more »
Federal Reserve Issues FOMC Statement Signaling a March Interest Rate Hike as Well As Reducing the Size of the Fed's Balance Sheet
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent. With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate. The Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March. Beginning in February, the Committee will increase its holdings of Treasury securities by at least $20 billion per month and of agency mortgage backed securities by at least $10 billion per month. The Federal Reserve's ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses." more »