The Federal Reserve (Fed) is keeping interest rates low for the time being and will continue to buy debt to steer the US economy through the corona crisis. The American banking system reports this on Thursday. It was already expected that no changes would come, partly because of the presidential elections in the United States.
The interest rate has been at the current level of almost 0 percent since March. The policy committee has previously made it clear that it does not expect interest rates to rise until the economy has recovered sufficiently and is moving towards the Fed’s objectives. This is about sufficient employment and price stability.
The statement did not mention the election with no final results, but Fed Chairman Jerome Powell may say something in his commentary on the interest rate decision. In connection with Tuesday’s presidential election, the Fed began its two-day policy meeting on Wednesday, a day later than usual.
Economic activity and employment are continuing to recover, but remain at significantly lower levels than at the beginning of this year, the Fed said. “The corona pandemic is causing enormous human and economic suffering throughout the US and the world,” said the central bank.
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