Federal Reserve keeps rates stable as US economy continues to recover

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By Christiana Sciaudone

GossipMantri.com – The Federal Open Market Committee kept its rate at 0.25%, as expected by analysts.

“Economic activity and employment have continued to recover but remain well below their levels at the start of the year,” the FOMC said in a statement. “Weaker demand and past declines in oil prices have dampened consumer price inflation.”

Fed officials have spoken publicly in recent months on the need for more stimulus to support a recovery, although Congress has been unable to reach agreement on a plan to help households and consumers. companies.

“Over the next few months, the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current rate to keep the market functioning well and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses, ”the statement said.

The Fed held its periodic two-day meeting this week, amid the U.S. election that has yet to see a clear winner. Former Vice President Joe Biden is in the lead, with 264 votes to 213 for President Donald Trump. Pennsylvania and Nevada are among the states most likely to impact the bottom line.

In September, policymakers agreed to hold rates until the labor market improves and inflation hits 2%, which is not expected until 2023 or 2024.

Bankers should have discussed the future of the Federal Reserve’s asset buying program at this week’s meeting, changing what they buy or by how much, according to Bloomberg.

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