Federal Reserve Holds Rates Near Zero

The Federal Reserve on Wednesday kept the benchmark interest rate near zero and said the economy is continuing its progress despite fears of a pandemic.

The Federal Open Market Committee concluded its two-day meeting with interest rates in a target range between zero and 0.25%.

Besides, the committee said in a unanimously approved statement that the economy continues to "consolidate." Despite the optimism about the economy, Chairman Jerome Powell said the Fed is nowhere close to considering a rate hike.

Our approach here has been to be as transparent as possible. We haven't made more significant progress yet.”

https://twitter.com/federalreserve/status/1420486294908645379?s=20

"Extra significant progress" on inflation and employment is the benchmark set by the Fed before it tightened policy, which meant slowing and eventually halting monthly bond purchases and eventually raising interest rates. The statement only indicated that "progress" has been made, and the FOMC will continue to monitor conditions to see how close they are to the Fed's targets.

https://twitter.com/federalreserve/status/1420470158494162944?s=20

However, the suggestion that "progress" was being made toward the Fed's targets on employment and inflation was seen as a sign that changes in policy, particularly with regard to monthly bond purchases, could be on the way.