Fed leaves interest rates near zero

  • The Federal Reserve said on Wednesday it expects to maintain the target range for its benchmark overnight lending rate at the current 0% to 0.25% “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.
  • It also said it will continue to buy U.S. Treasuries and agency residential and commercial mortgage-backed securities in the amounts needed to support smooth markets, and to offer large-scale overnight and term repurchase agreement operations.
  • “The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.”
  • “Weaker demand and significantly lower oil prices are holding down consumer price inflation.”
  • “Disruptions to economic activity here and abroad have significantly affected financial conditions and have impaired the flow of credit to U.S. households and businesses.”
  • “The public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”

Source: Reuters