Federal Reserve Holds Rates Steady, Shrugs Off Inflation Concerns

(Worthy News) – The Federal Reserve kept its benchmark interest rate unchanged Wednesday and repeated its view that the coronavirus pandemic will continue to weigh on the domestic economy even as conditions continue to improve.

The Fed also pledged to continue buying $120 billion in Treasury, agency and mortgage-backed securities each month, and for as long as it takes to see “substantial further progress has been made toward the Committee’s maximum employment and price stability goals” while keep its key Fed Funds rate in the record low range of 0% to 0.25%.

“The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world,” the Fed said in its post-decision statement. “Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement.” [ Source: The Street (Read More…) ]

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