Fed commits to interest rates near zero until economy is at ‘maximum employment’

In its last meeting before the November elections, the Federal Reserve did as expected and announced that it will maintain a target interest rate at or near zero percent until the economy recovers from the coronavirus pandemic, which could take years to accomplish.

Some experts expect the rate to remain unchanged until the end of 2023.

The Fed announced last month that it would temporarily allow inflation to run above its target to make up for periods of below-target inflation.

For now, the Fed’s biggest task is ensuring as strong a recovery from the pandemic shutdowns as possible.

Read more…

Please follow and like us: