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The Fed announced in a statement after a regular meeting of the Federal Open Market Committee (FOMC) that it would freeze the base rate at the current 0.00 ~ 0.25%. Photo = REUTERS
The Central Bank of the United States (Fed) once again maintained a “zero interest rate” on the 5th (local time). Amid the confusion over the results of the US presidential elections, the Fed said that “economic activity is still at a much lower level than at the beginning of the year.”
The Fed announced in a statement after a regular meeting of the Federal Open Market Committee (FOMC) that it would freeze the base rate at the current 0.00 ~ 0.25%.
After deciding on a zero interest rate to respond to the new coronavirus infection (Corona 19) in March this year, he held the same position at this FOMC meeting for the fifth time.
At the FOMC meeting on March 15, when concerns arose about the economic recession due to the Corona 19 global pandemic (pandemic), the Fed cut its base rate by 1 percentage point from 1.00 to 1.25% to 0. .00 to 0.25%.
The judgment that the US economy is deteriorating as a result of the new coronavirus infection (Corona 19) is also interpreted to have worked as well.
In a statement, the Fed said in a statement: “The current public health crisis continues to put pressure on economic activity, employment, and prices,” and “Economic activity and employment continue to rebound, but it is still at a very low level. lower than at the beginning of the year. “
Overall, it contained a phrase similar to the September FOMC statement, but CNBC and Bloomberg said the phrase “improved in recent months” at the time September was “downgraded” to “continued recovery.”
The view on financial conditions has changed from “improving” in the previous statement to “still relaxing”.
Additionally, there were no changes to the FOMC’s asset purchase policy, Bloomberg reported.
Fed Chairman Jerome Powell told a video news conference: “I am particularly concerned about the corona 19 outbreak in America” and “the economic outlook is unusually uncertain.”
“Even if people are re-engaging in a wide range of activities, it will be difficult to fully recover the economy until they are convinced that they are safe,” Powell said. Wearing a mask will help the economy.
President Powell also took an order to boost the economy on this day. “I think additional support is needed through fiscal and monetary policy,” he emphasized. “It is Congress that determines the timing and scale of the additional stimulus to the economy,” Powell said. “Support under the CARES Act last March was essential to support the recovery and was more than expected.” .
When asked if there would be changes to Fed policy if additional fiscal stimulus is not provided, Powell responded that “we will consider all external factors.”
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