“Unchanged Rates – Fed Reserve Hints At What’s Next

The Federal Reserve kept interest rates steady on Wednesday, saying that the current stance of monetary policy is likely to remain appropriate for the foreseeable future. The news was widely expected, as the Fed indicated when its two-day policy meeting ended earlier in the day that it would maintain its target rate range at between 0.25 and 0.50 percent. In a statement released after the meeting, the Fed noted that it is monitoring the economic data and policy developments closely, and will adjust its stance of monetary policy as necessary. The central bank also noted that it expects economic activity and employment to continue to expand at a “moderate pace” over the coming quarters. The statement also noted that inflation remains below the Fed’s longer-term objective of 2 percent, but added that the inflation outlook is “highly uncertain” given the current economic climate and the impact of the coronavirus pandemic. The Fed said that it will continue to monitor inflation expectations and strive to foster and sustain an inflation rate of 2 percent over time. The policy announcement was largely in line with expectations, and was seen by some analysts as a sign that the Fed would be cautious about raising rates until inflation begins to move closer to its target level. Additionally, the Fed said that it is “determined to use its full range of tools” to support the economy, which could include additional purchases of government-backed assets and supporting lending to businesses and households. Overall, the Fed’s decision to keep its short-term interest rates unchanged was largely unsurprising, as it reflects the central bank’s view that the current stance of monetary policy is likely to remain appropriate for the foreseeable future. That said, the Fed will likely remain vigilant in monitoring economic data and policy developments, and will adjust its policy as appropriate. The Federal Reserve kept interest rates steady on Wednesday, saying that the current stance of monetary policy is likely to remain appropriate for the foreseeable future. The news was widely expected, as the Fed indicated when its two-day policy meeting ended earlier in the day that it would maintain its target rate range at between 0.25 and 0.50 percent. In a statement released after the meeting, the Fed noted that it is monitoring the economic data and policy developments closely, and will adjust its stance of monetary policy as necessary. The central bank also noted that it expects economic activity and employment to continue to expand at a “moderate pace” over the coming quarters. The statement also noted that inflation remains below the Fed’s longer-term objective of 2 percent, but added that the inflation outlook is “highly uncertain” given the current economic climate and the impact of the coronavirus pandemic. The Fed said that it will continue to monitor inflation expectations and strive to foster and sustain an inflation rate of 2 percent over time. The policy announcement was largely in line with expectations, and was seen by some analysts as a sign that the Fed would be cautious about raising rates until inflation begins to move closer to its target level. Additionally, the Fed said that it is “determined to use its full range of tools” to support the economy, which could include additional purchases of government-backed assets and supporting lending to businesses and households. Overall, the Fed’s decision to keep its short-term interest rates unchanged was largely unsurprising, as it reflects the central bank’s view that the current stance of monetary policy is likely to remain appropriate for the foreseeable future. That said, the Fed will likely remain vigilant in monitoring economic data and policy developments, and will adjust its policy as appropriate.