Source Title: the Federal Reserve keeps the target range of federal funds rate unchanged
Washington, January 27 (Xinhua) the US Federal Reserve announced on the 27th that it would maintain the target range of the federal funds rate between zero and 0.25%, in line with market expectations.
The Federal Reserve issued a statement after the two day monetary policy meeting concluded that in recent months, the pace of recovery of US economic activity and employment has slowed down, and the most severely affected sector by COVID-19 is particularly depressed. Meanwhile, weak demand and the earlier drop in oil prices have curbed the rise in consumer prices, and the overall financial situation remains loose.
The Fed said economic development will largely depend on the outcome of epidemic prevention and control, including progress in vaccination. The current public health crisis will continue to put pressure on economic activity, employment and inflation, and pose considerable risks to the economic outlook.
The Federal Reserve said it will continue to increase its holdings of US Treasury bonds at a rate of at least US $80 billion per month and purchase institutional mortgage-backed securities at a rate of no less than US $40 billion per month until substantial progress is made in the two major goals of full employment and price stability.
At a news conference held after the meeting, Federal Reserve Chairman Powell said that the Federal Reserve will continue to maintain a highly loose monetary policy position until the two major goals of full employment and price stability are achieved. However, the US economy still has a long way to go from these two major goals, and it may take some time to make substantial progress.