Image copyright Reuters image caption Fed Chairman Jerome Powell , Says The US Economy Seems To Be In A "Right Place " For Recovery
Improving Outlook - A Compilation of Independent Forecasts by Board Members 'administration ofthe bank - includes projections that inflation could rise later this year, reaching 2.4%, above the bank's historic 2% target. But Mr Powell said such a move was likely to be "transient ".
Share prices on Wall Street surged after the announcement.
"With the Fed keen not to tighten its policy until it sees inflation on track to moderately exceed its 2% target on a sustained base, and also stressing that any increase in inflation should be transiWe expect the Fed to follow through on its commitment not to hike rates for a while, "said Michael Pearce, senior US economist at Capital Economics.
" The The main risk is that the rise in inflation that most forecasters expect this year will prove to be more sustainable than current Fed officials expect. "
The expected economic recovery in the The United States is more robust than in Europe.
But Mr Powell said he was not worried that weak growth abroad would hurt the United States, the 'The main focus of the bank. "When the US economy is strong, this strength also tends to support global activity, " he said.
"I would like to see Europe grow faster, I would like to see the vaccination rollout go more smoothly but I 'm not too worried about us in the short term ", he said. he declared. thinks that nowe are in the right place. Everything is in front of us, but the data should get stronger pretty quickly and stay that way for a while. "