US, WASHINGTON (ORDO NEWS) — The US Federal Reserve System, which acts as the country’s central bank, has kept the rate at 0-0.25% per annum, as expected by the market. This is stated in the message of the financial regulator following the meeting of his leadership.
“The ongoing crisis will significantly affect economic activity, employment and inflation in the near future and will create significant risks for the economy in the medium term. In light of these events, the committee decided to maintain the target range of the federal funds rate at 0-0.25%,” said in a statement on the regulator’s website.
In March, the US Federal Reserve unexpectedly lowered the interest rate twice due to a threat to economic prospects caused by the spread of coronavirus infection. As noted in the regulator’s document, the FOMC (Federal Committee for Open Market Operations) will maintain this range of rates until it is certain that the economy has overcome the effects of the pandemic and is on the way to targets for maximum employment and price stability.
It is also noted that the Fed will continue to purchase treasury bonds and securities secured by mortgages (MBS) in the volumes necessary to ensure the smooth functioning of markets and the impact of the current monetary policy on the economy. In addition, the regulator will continue to offer large-scale overnight repos.
Monetary policy actions unanimously voted 10 members of the committee. The next meeting of the US Federal Reserve will be held June 9-10, based on its results, a macroeconomic forecast will also be presented.
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