Federal Reserve Keeps Rates Close to Zero, Continues Buying Treasurys
Federal Reserve Chairman Jerome Powell (Wikimedia Commons)
The Federal Reserve said Wednesday that it would hold benchmark U.S. interest rates close to zero and continue buying Treasury bonds to support the coronavirus-devastated economy.
- Rate to stay in range between 0 and 0.25%.
- Fed says “path of the economy will depend significantly on the course of the virus.”
- “Economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year,” according to the statement.
- “Weaker demand and significantly lower oil prices are holding down consumer price inflation.”
- Purchases of Treasury bonds and mortgage-backed securities will continue “at least at the current pace to sustain smooth market functioning.”
- The Fed’s monetary-policy committee issued the statement at the conclusion of its two-day policy meeting this week.
- Fed Chair Jerome Powell is expected to host a press conference at 2:30 p.m. ET.
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