The Federal Reserve (Fed) will maintain the current interest rate at a bandwidth of 0 to 0.25 percent, the US system of central banks announced on Wednesday. Interest rates have been at their current level since March.
The Federal Reserve also announced that it will continue the current debt buying program. The central bank system stresses its readiness to use “all available instruments” to stimulate the US economy in the corona crisis.
The Fed writes in the statement that the US economy has shown some signs of recovery in recent months, but economic activity is “still far below last year’s level.”
The policy committee does not expect interest rates to rise until the economy has recovered sufficiently and is moving towards the Fed’s objectives. This is about sufficient employment and price stability.
However, it is still unclear when the US economy will pick up again. “The path of our economy will depend on the development of the virus,” said the Federal Reserve.