(ABM FN-Dow Jones) The Federal Reserve left key interest rates unchanged as expected. This was evident from the US Central Bank interest rate decision on Wednesday night.
As expected, the federal funds rate remained at 0.00 to 0.25 percent. The discount rate was kept at 0.25 percent.
The decision to maintain the policy was made unanimously.
Moreover, the Federal Reserve purchases a total of $ 120 billion in Treasury and mortgage-related loans every month to keep financial markets stable and support the economy in the United States.
The US central bank has reiterated that it will continue to use its full suite of tools to support the US economy to maximize employment and achieve long-term inflation targets at 2%.
The Fed said it intends to maintain this accommodative monetary policy until these results are achieved.
The Fed said it has seen a boost in economic activity and employment, although “the coronavirus pandemic continues to cause massive human and economic problems in the United States and around the world,” the US central bank said.
The Fed also indicated that the sectors hardest hit by the epidemic remain weak, but have shown improvement since then.
The trajectory of the economy, according to the US Central Bank, will depend to a large extent on the additional trajectory of the Coronavirus, including the progress of vaccination programs. The Fed said: “The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain.”
Update; To add additional information.
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From Beursplein 5, eds ABM Financial News Developments in the stock markets, and the Amsterdam Stock Exchange in particular, are closely watched. The information in this column is not intended as professional investment advice or as a recommendation to make specific investments.