Federal Reserve Expected to Maintain Interest Rates, Says WSJ
New York, NY, March 17, 2021-The Federal Reserve is likely to reaffirm its plans to maintain easy-money policies until the U.S. economy recovers further from the effects of coronavirus pandemic, while also noting the brightening outlook for growth, reports the Wall Street Journal.
“Fed officials are set to conclude a two-day meeting Wednesday by releasing a policy statement and their updated projections for economic growth, unemployment, inflation and interest rates in coming years. Chairman Jerome Powell will take questions at a postmeeting news conference.
“Mr. Powell and his colleagues have repeatedly said the central bank will hold overnight interest rates near zero until the economy reaches maximum employment and sustained 2% inflation-conditions they don’t expect to meet this year. The Fed also plans to continue buying at least $120 billion a month of Treasury debt and mortgage-backed securities until ‘substantial further progress’ is made toward those objectives.”