Fed Keeps Key Interest Rate near Zero

The Federal Reserve kept on Wednesday the key interest rate near zero, with no further hikes until 2023.

The Fed promised to continue the path with extremely low rates and massive bond purchases as long as the economy remains faltering due to the slowdown caused by COVID-19.

Some analysts believe that brighter forecasts would force officials to raise the projected timeframe to show they are prepared to stave off a potential spike in inflation, while others believe the Fed would stick to similar estimates until 2023.

Today, 11 Fed officials indicated that they favor a near-zero federal funds rate until 2023, while seven others are now expecting the rate above that level, up from five at the December meeting.

Meantime, their average rating remained unchanged at a rate near-zero during this period.