27 January 2021 FOMC Meeting Minutes: Downside Risks Remain But Fiscal Policy May Be More Expansionary Than Anticipated

– this post authored by Steven Hansen

The 27 January 2021 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members. An interesting quote regarding fiscal policy:

… With regard to upside risks, some participants pointed to the possibility that fiscal policy could turn out to be more expansionary than anticipated, that households could display greater willingness to spend out of accumulated savings than expected, or that widespread vaccinations and easing of social distancing could result in a more rapid boost to spending and employment than anticipated. Participants generally viewed the risks to the outlook for inflation as having become more balanced than was the case over most of 2020, although most still viewed the risks as weighted to the downside …

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