Fed officials now seeing US job market near full recovery | AP News

The economy is still roughly four million jobs short of its pre-pandemic level, though some Fed policymakers increasingly believe that all those jobs may not be recovered, at least not anytime soon, as older Americans retire and some former workers stay home to take care of children.

Fed officials also voiced rising concerns about inflation, saying that faster rate hikes may be needed, and signaling that they could start reducing the Fed’s huge portfolio of bonds more quickly than expected.

reflected policymakers’ rising discomfort with elevated inflation and stronger confidence in the recovery of the economy and the labor market despite the downside risks due to the Omicron variant,” Kathy Bostjancic, chief U.S.

The Fed said last month that it would reduce the monthly bond purchases it has made since the spring of 2020 — which are intended to lower long-term rates — at twice the pace it had previously set and will likely end those purchases in March.

Fed policymakers in December also suggested they could hike the Fed’s short-term benchmark interest rate three times this year.

The Fed’s key rate, which has been pinned near zero for nearly two years, influences many consumer and business loans, including mortgages, credit cards and auto loans.

Since the pandemic struck in March 2020, the Fed has purchased more than $4.5 trillion in Treasurys and mortgage-backed securities, more than doubling its financial holdings to nearly $8.8 trillion.

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