–
WASHINGTON (Reuters) – The Fed reiterated its pledge to use a full range of instruments to support the American economy and keep interest rates near zero until it recovers from the effects of the coronavirus epidemic.
The Fed estimates that the trajectory of the economy will largely depend on the course of the epidemic.
“Following the sharp decline, economic activity and employment have recovered slightly in recent months, but remain well below the levels at the start of the year,” the US central bank said after a two-day meeting.
The Fed’s management unanimously decided to keep the key rate in the range of 0.00-0.25%, where it has been since March 15.
“The committee intends to maintain this target level until it is confident that the economy has gone through the latest developments and is on track to achieve the goals of maximum employment and price stability,” the statement said.
Market participants hoped that the Fed would discuss whether and how to strengthen the so-called forecast of future actions, possibly promising that rates will not change until unemployment and inflation reach specific levels.
There is no indication of this in the Fed’s announcement, and many analysts suggest such changes will not take place until the Fed meeting in September.
The Fed also said it will continue to buy at least $ 120 billion of Treasury bonds and mortgage-backed bonds per month to ensure the stability of financial markets.
(Anne Safir, Howard Schneider, Lindsay Dunsmuir and Johnnell Marthe. Translated by Dmitry Antonov)
–
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
–
