(Kitco News) The Federal Reserve views the pace of global vaccinations as a “risk to progress,“ the central bank Chair Jerome Powell said at a panel on the global economy during the IMF and the World Bank Group's 2021 Spring Meetings.
When asked to comment whether the Fed monitors the global vaccine rollout as one of the elements when determining its own monetary policy stance, Powell replied that the central bank would see lack of global vaccination progress as a risk to the overall economic recovery.
“Our asset purchasers will continue until we see substantial progress towards our goal. We are looking for actual progress inflation and indicators of maximum employment. We would look at global vaccination as a risk to progress we are making,“ Powell said.
He added that viruses have no respect for borders. “Until the world is vaccinated, we will be at risk of new mutations and won't be able to resume activity around the world,“ Powell said.
There is still a risk from the COVID-19 pandemic in the U.S. as well with cases are moving back up, he pointed out. “I urge people to get vaccinated. We don't want another outbreak; it will slow down the recovery.“