US Fed on hold -- for now -- but price concerns mounting

WASHINGTON, June 16: The Federal Reserve is not expected to announce any changes when it concludes its two-day policy meeting on Wednesday, but could offer reassurances that it is keeping a watchful eye on rising prices.
US central bankers have made clear they will not alter monetary policy until they see lasting signs that employment and inflation have recovered from the unprecedented economic damage from the Covid-19 pandemic.
But that time may be approaching faster than previously expected, amid the accelerating reopening of the world's largest economy, fueled by widespread vaccinations and huge amounts of government aid.
The Fed cut the benchmark lending rate to zero in March 2020, and has been buying $120 billion a month in bonds to provide liquidity to support the economy.
But rising prices have ignited worries THAT policymakers will have to pull back on that stimulus sooner or faster than expected, which could then slam the brakes on the economic rebound -- which would damage President Joe Biden's policy agenda.Unemployment has dropped, but remains at 5.8 percent in May, while consumer and producer prices have surged, to 5.0 and 6.6 percent, respectively.    -AFP