The Federal Reserve Bankâ€™s Federal Open Market Committee (FOMC) unanimously reaffirmed it would not raise lending rates until the jobs recovery is complete, according to minutes just released of their March 16- 17 meeting. The jobs recovery is not expected to occur for 15 months. Meanwhile, the service and manufacturing sectors both soared and broke records last month, according to yesterdayâ€™s data release from the Institute of Supply Management.
Manufacturing activity, according to the monthly survey of purchasing managers conducted in March by the Institute of Supply Management, soared to a record high. This survey has been conducted for decades by ISM, a membership and accreditation body of supply management professionals at the nationâ€™s largest corporations.
Likewise, the index of business at service companies in March also soared, rocketing from 55.3 to 63.7.
While manufacturing accounts for 11% of total U.S. economic activity, this index of activity in the service sector of the economy accounts for 89% of U.S. gross domestic product.
Amid new signs almost every week and repeated record-breaking high prices in the stock market, the FOMC minutes for its March 16-17, 2021 meeting, were particularly important.
The FOMC unanimously reaffirmed it would not raise lending rates until a full recovery in the job market. The jobs situation, according to consensus forecasts of leading economists, is not expected to recover fully until June 2022.
Despite evidence a boom is under way, the Fed is not even close to taking action to slow the economy.
The Standard & Poorâ€™s 500 stock index closed Friday at an all time high of 4,128.80. The index gained +0.77% from Thursday and +2.67% from last week. The index is up +59.42% from the March 23rd bear market low.
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