The Federal Reserve kept its easy-money policies in place and vowed to maintain them until the US economy recovers further from the aftermath of the coronavirus pandemic, while officials also highlighted an improved outlook for growth.Central bankers voted unanimously to maintain overnight interest rates close to zero, where they have been set for the past year, and will continue acquiring at least $120 billion of treasury bonds and mortgage-backed securities monthly. Mr. Powell said the measures “will ensure that monetary policy will continue to deliver solid support towards the economy until the recovery is finalized. Fed officials expect the economy to recover quicker than they did a few months ago, according to new projections released on Wednesday. They sharply raised their predictions for economic growth and inflation, estimating that the Covid-19 vaccination campaign and trillions of dollars of economic stimulus will propel the US economy to its fastest expansion since the early 1980sEven so, most Fed officials still expect to maintain ultralow interest rates through 2023. Only seven of 18 policy makers at Wednesday’s meeting estimate lifting rates in 2022 or 2023, up from five in December.
Fed Holds Steady on Interest Rates, Bond Purchases
Published by
July 26, 2024
(GMT+2)
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