In response to the COVID-19 outbreak, the US government and the Federal Reserve have implemented stimulus measures to jolt the economy and keep money flowing from businesses to workers and back again. It’s important to note, however, that this program will come to an end in spring 2022.
The Federal Reserve
When the Federal Reserve purchases billions of dollars in bonds each month, it has the power to influence the economy of the United States. But this increases the cost of living, which is a big problem, according to MARCA. The Federal Reserve announced in November that it would reduce its monthly bond-buying from $120 billion to $105 billion and eventually down to $90 billion in the coming months. Monthly purchases of government and mortgage securities have been slashed by 30 billion dollars in January.
As a result of this, the Federal Reserve’s stimulus program will be completely phased out by March 2020. Although some states continue to distribute stimulus checks, the federal government’s stimulus program has ended. Fed will follow suit and reduce the bond-buying stimulus program earlier than expected.
Winding Down Stimulus Program
Job creation in America fell short of expectations last month, adding to President Biden’s woes, according to the AFP. Biden and his Build Back Better bill have relied on a strong economy to gain public support for their massive spending bill. The data released by BLS shows a tangled picture of American workers’ prospects in the wake of the COVID-19 pandemic.
US Federal Reserve has begun winding down its massive stimulus program put in place at beginning of the COVID-19 pandemic, according to The Guardian. When and how to end the stimulus programs put in place as a result of the pandemic have been debated by Federal Reserve officials for a few months.
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