Watching Pandemic Factors, Fed Holds Rates And Asset Purchases Steady
Posted on 01/27/2021
The Federal Reserve pledged to keep its low interest rate policies in place even well after the economy has sustained a recovery from the COVID pandemic. The Fed kept their benchmark short-term rate pegged near zero. The Fed said they would keep buying Treasury and mortgage bonds to restrain longer-term borrowing rates and support the economy. Federal Reserve Chairman Jay Powell, moments ago: “There is nothing more important to the economy now than people getting vaccinated.”
The Federal Reserve is looking at coronavirus spread, the variant of COVID, and vaccines rates in a bid to make determinations on policy. Powell and his members are trusting the experts, taking cues from U.S. health officials.
Powell sees 9 million to 10 million people are out of work from COVID.
“The connection between low interest rates and asset values is probably something that’s not as tight as people think,” Powell said during his Q&A.
Keywords: Federal Reserve System.
