Fed holds rates near zero amid fresh signs US economic recovery is slowing


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(Worthy News) – The Federal Reserve said during its first meeting of the year on Wednesday that it would leave interest rates near zero and reaffirmed its commitment to other easing policies amid fresh signs the U.S. economic recovery from the coronavirus pandemic is slowing.

The U.S. central bank, as widely expected, held the benchmark federal funds rate at a range between 0% and 0.25%, where it has been since mid-March, and said it would maintain its large-scale asset purchases, a practice known as quantitative easing.

“The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic,” policymakers said in a post-meeting statement. [ Source: Fox Business (Read More…) ]

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