Breaking News: The Fed Announces Its Interest Rate Decision! The United States Federal Reserve (Fed) has released the highly anticipated interest rate decision. The Fed has chosen to keep its target federal funds rate unchanged at 0 to 0.25 percent. According to the Fed’s statement, the decision was reached unanimously. The Fed reiterated its commitment to using all available tools to support the U.S. economy.
Key Points from the Fed’s Interest Rate Announcement
In its announcement, the Federal Reserve confirmed that it made no change to the federal funds rate. The statement also included the following key observations and commitments:
- The Fed’s policy decisions remain heavily dependent on how the coronavirus pandemic evolves.
- The ongoing public health crisis will continue to weigh heavily on economic activity, employment, and inflation in the near term.
- Economic activity and employment have shown some improvement in recent months, but they remain well below levels seen at the start of the year.
- The coronavirus pandemic continues to pose significant risks to the economic outlook.
- Dollar liquidity swap lines and repo facilities for foreign central banks will remain in place through March 31, 2021.
- Purchases of Treasury and agency-backed securities will continue at least at the current pace.
- The Fed stated it will maintain the current target range for the federal funds rate until it is confident that the economy has weathered recent developments and is on track to achieve the Fed’s goals of maximum employment and price stability.