Economics
Gridlocked Washington Would Force Fed to Do More for Economy
- Less fiscal support puts focus on Fed’s bond-buying program
- Powell may hint at upcoming changes after Thursday’s decision
Jerome Powell
Photographer: Drew Angerer/Getty Images
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The tightly contested U.S. election puts pressure on the Federal Reserve to deploy even more monetary stimulus to support the economy under a divided government.
The central bank is not expected to announce a shift in stance Thursday when Fed officials conclude a two-day meeting in Washington. But Chair Jerome Powell may hint at coming changes to the Fed’s bond-buying program, after chances of aggressive fiscal spending for households and businesses faded along with prospects of a Democratic government sweep.