Fed likely to stress commitment to low rates

WASHINGTON — The U.S. Reserve this week will likely underscore its commitment to low-interest rates, even as the economy recovers further from the devastation of the viral pandemic.

Chairman Jerome Powell is sure to strike a dovish tone after the Fed’s latest policy meeting ends Wednesday. He may, in particular, aim to puncture any speculation the Fed might soon curtail its aggressive efforts to support the economy, including its bond purchase program that aims to hold down longterm interest rates.

The conditions the Fed has laid down before it would adopt any policy changes aren’t close to being met, so no new actions are expected this week. Still, analysts will scrutinize the Fed’s policy statement and Powell’s comments to reporters to gauge how Fed officials are reacting to recent economic developments.

Since the Fed last met in December, the distribution of an effective vaccine has begun and a $900 billion relief package was enacted in late December.

President Joe Biden has since proposed another financial support plan — a $1.9 trillion package that is larger than many economists had expected and will require congressional approval.