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The US Federal Reserve (Fed) left the official rate unchanged in the 0-0.25% range, within expectations.
The statement reiterates that the Fed is determined to use all its tools to support the US economy during this difficult period, thus supporting maximum employment and price stability.
In the statement, which stressed that the Kovid-19 outbreak caused enormous economic hardship in the United States and around the world, it was noted that economic activity and employment continued to recover, but remained well below. below the levels of the beginning of the year.
– “Financial conditions continued to be favorable”
The statement stated that weak demand and the previous drop in oil prices kept inflation low and financial conditions in general continued to be favorable.
Stressing that the course of the economy will significantly depend on the course of the epidemic, the statement states: “The current public health crisis will continue to put pressure on economic activity, employment and inflation in the short term and place significant risks to the medium-term economic outlook “. was rated.
In the statement, it was emphasized that the goal is to ensure maximum employment and 2% inflation in the long term, and that inflation will aim to be slightly above 2% for a while, so that inflation will reach an average of 2% over time and long-term inflation expectations will remain at 2%.
– “In case of risk, the stance of monetary policy will be adequately adjusted”
It has been noted that the Federal Open Market Committee (FOMC) is expected to maintain the smooth stance of monetary policy until these results are achieved, and it has been decided to keep the target range for the Federal Funds rate in the 0 range. -0.25%.
In the statement, it was reported that the Fed will continue its purchases of treasury bonds and mortgage-backed securities at the current pace in the coming months in order to keep the market running smoothly and help develop harmonious financial conditions, thus supporting the flow. loans to households and businesses.
Affirming that the results of the information received in terms of economic outlook will continue to be monitored, “The Committee will be ready to adequately adjust the stance of monetary policy in the event of risks that may hinder the achievement of its objectives”. the expression was used.
The statement said the committee’s assessments will take into account a wide range of information, including developments regarding public health, labor market conditions, inflation pressures and expectations, and financial and international developments.
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