FED STRESSES COMMITMENT TO LOW RATES
Chair Jerome Powell said Wednesday that the Federal Reserve will keep pursuing its low interest rate policies until an economic recovery is well underway, acknowledging that the economy has faltered in recent months.
The Fed said in a statement after its latest policy meeting that hiring and economic growth had slowed, particularly in industries affected by the raging pandemic. The officials kept their benchmark short-term rate pegged near zero and said they would keep buying Treasury and mortgage bonds to restrain longer-term borrowing rates and support the economy.
Powell made clear his belief that the economy will struggle in the coming weeks and months, until widespread vaccinations and government rescue aid eventually fuel a sustained rebound.
“We’re a long way from full recovery,” he said.