US Federal Reserve Sees Considerable Risk in Pandemic, No Key Rate Adjustment | 11/05/20



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The US Federal Reserve views the pandemic as a significant risk to the US economy.

“The current public health crisis will continue to weigh on economic activity, employment and inflation,” the Federal Reserve said after the Federal Open Market Committee (FOMC) meeting. The monetary watchdogs noted that they are still ready to give the economy a sustainable stimulus.

The key rate was left at 0.00 to 0.25 percent. The decision was unanimous. Economists and brokers expected this decision. The Fed also wants to continue its bond purchases “at least” at the current level, that is, government bonds worth $ 80 billion a month and mortgages worth $ 40 billion. As long as the pandemic threatens the US economy, the monetary authorities are unlikely to curtail those purchases.

In September, the monetary authorities promised to support the rally by lifting the bar on rate hikes and noting that they would keep rates close to zero for at least three years. At that meeting, the Fed set three thresholds for interest rate increases, including indications of a tight labor market, an annual inflation rate of at least 2 percent, and forecasts that inflation will be moderately above 2 percent. percent.

WASHINGTON (Dow Jones)

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