The US Federal Reserve, Fed decided to keep its key rates unchanged and to continue its accommodative monetary policy today. According to the Fed Open Market Committee, the policy stays until the Central Bank has seen the inflation moderately above 2 percent for some time and has achieved maximum employment over the longer run. The federal funds rate is 0 to 1/4 percent.
-Fed is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals, it said.
-The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened, the Fed said.
-The path of the economy will depend significantly on the course of the virus, including progress on vaccinations. The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain.
-In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee’s maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses, the Central Bank said.
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