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The US Federal Reserve sees the pandemic as a significant risk to the US economy.
“The current public health crisis will continue to weigh on economic activity, employment and inflation,” the Federal Reserve said after the Federal Open Market Committee (FOMC) meeting. Monetary authorities have signaled that they are ready to continue giving the economy a sustainable stimulus.
The key rate was left from 0.00 to 0.25%. The decision was unanimous. Economists and stockbrokers expected this decision. The Fed also wants to continue its purchases of bonds “at least” at the current level, namely government bonds worth $ 80 billion a month and mortgages worth $ 40 billion. As long as the pandemic threatens the US economy, monetary authorities are unlikely to scale back such purchases.
In September, monetary authorities promised to support the recovery by lifting the barrier to rate hikes and signaling that they would keep rates close to zero for at least three years. At that meeting, the Fed set three thresholds for interest rate hikes, including indications of a tight labor market, an annual inflation rate of at least 2%, and expects inflation to be moderately above 2%. .
WASHINGTON (Dow Jones)
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