Fed to hold interest rates near zero at least till 2022

Original article by Nick Timiraos
The Australian – Page: 17 : 12-Jun-20

The US Federal Reserve has left interest rates on hold after its latest two-day policy meeting, and chairman Jerome Powell has indicated that a rate rise will not be on the agenda for some time. Federal Reserve officials unanimously agreed that the cash rate is likely to remain at around zero in 2021, and the majority expect no change in monetary policy during 2022. Meanwhile, the central bank intends to continue purchasing Treasurys and mortgage securities at the current rate, while Powell says the US labour market is unlikely to rebound from the coronavirus quickly, despite recent data showing that the economy added 2.5 million jobs in May.


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