Fed signals it’s ready to do more

Benchmark interest rate kept at record low.

WASHINGTON — The Federal Reserve kept its benchmark interest rate at a record lownear zero Thursday and signaled its readiness to do more if needed to support an economy under threat from a worsening coronavirus pandemic.

The Fed announced no new actions after its latest policymeeting but left the door open to provide further assistance in the coming months. The central bank again pledged to use its “full range of tools to support the U. S. economy in this challenging time.” The economy in recentweeks has weakened aftermounting a tentative recovery fromthe deep pandemic recession in early spring.

Several Fed officials have expressed concern that Congress has failed so far to provide further aid for struggling individuals and businesses. But the Fed’s policy statement, issued after a two- day meeting, made no mention of lawmakers’ failure to act.

Amultitrillion- dollar stimulus, enacted in the spring, had helped sustain jobless Americans and ailing businesses but has since expired. The failure of lawmakers to agree on any new rescue package has clouded the future for the unemployed, for small businesses and for the economy as a whole.

There is some hope, though, that a logjamcan be broken and more economic relief can be enacted during a post- election “lame- duck” session ofCongress between now and early January.

The central bank has been buying Treasury and mortgage bonds to hold down long- term borrowing rates to encourage spending. And it has kept its key short- term rate, which influencesmany corporate and individual loans, near zero. Someeconomists think the policymakers’ next move will be to expand the bond- buying effort, which is intended to boost the economy by lowering longer- term borrowing rates.

The Fed’s latest policy meeting coincided with an anxiety- ridden election week and an escalation of the virus across the country. Most economists warn that the economy cannot make a sustained recovery until the pandemic is brought under control and most Americans are confident enough to return to their normal habits of shopping, traveling, dining and congregating in groups.

KEVIN DIETSCH/ POOL VIA ASSOCIATED PRESS Federal Reserve Chair Jerome Powell testifies during aHouse subcommittee hearing on the coronavirus in September in Washington.