The Federal Reserve said Wednesday that it would hold benchmark U.S. interest rates close to zero and continue buying Treasury bonds to support the coronavirus-devastated economy.
- Rate to stay in range between 0 and 0.25%.
- Fed says “path of the economy will depend significantly on the course of the virus.”
- “Economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year,” according to the statement.
- “Weaker demand and significantly lower oil prices are holding down consumer price inflation.”
- Purchases of Treasury bonds and mortgage-backed securities will continue “at least at the current pace to sustain smooth market functioning.”
- The Fed’s monetary-policy committee issued the statement at the conclusion of its two-day policy meeting this week.
- Fed Chair Jerome Powell is expected to host a press conference at 2:30 p.m. ET.
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