Investor questions for the Fed: what about inflation, bond buying and rates?
The Federal Reserve Board building on Constitution Avenue is pictured in Washington, USA on March 27, 2019. REUTERS / Brendan McDermid / File Photo Investors will review the Federal Reserve's comments at the end of their political meeting this week, due on Wednesday, for a glimpse of the central bank's deliberations on inflation, bond purchases and risks to the financial system arising from the soaring Asset prices result. Here are some questions investors may have: WHERE DOES INFLATION BELONG TO? Trillions of dollars in federal stimulus spending coupled with an economic reopening as more Americans get vaccinated against the coronavirus leaves investors stare at the specter of price overheating. The Federal Reserve has announced it expects some inflationary pressures, but predicts that it will be temporary and insufficient to justify rate hikes. After a decade of low inflation, the Fed is now aiming for inflation moderately above 2%. The Fed's ability to explain a possibl...