The United States and Canada are preparing

the Federal Reserve He indicated yesterday that he is likely to raise US interest rates in March and reaffirmed his plans to end his bond purchases in the same month before initiating a significant reduction in his asset portfolio.

The combined actions will complete a move away from the expansionary monetary policy that defined the era of the pandemic and toward a more urgent fight against inflation. the President The Federal Reserve Chairman said in a press conference after the meeting that the US central bank will remain open as it tightens monetary policy to prevent inflation from getting under control. “At this time, we have not made any decisions about the course of monetary policy,” he insisted, “we will be modest and smart.”

members A committee They also agreed on a set of principles to “drastically reduce the size of the asset portfolio,” limiting the amount of capital from maturing bonds it would reinvest each month. The plan will start after interest rates rise, with no specific date set yet.

On the other hand, the Canadian Central Bank Also meeting yesterday, interest rates were kept unchanged at 0.25%. the Governor Governor He said after the meeting that the economy no longer needed cash assistance and regarding interest rates he said “we are on an upward path” and decisions will be taken at each meeting. Markets are expecting a rate hike at the March 2 meeting.

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Sacha Woodward

"Wannabe writer. Lifelong problem solver. Gamer. Incurable web guru. Professional music lover."

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