Fed predicts economic return to pre-crisis levels only in 2022
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Fed Expects Interest Rates To Remain Near Zero Through 2022
The Fed on Wednesday announced its widely expected decision to maintain the target range for the federal funds rate at zero to 0.25 percent.
The accompanying statement also reiterated that the Fed expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.
The economic projections provided along with the statement showed most Fed officials expect rates to remain at current levels through 2022, with only a couple predicting an increase in rates.
In his post-meeting press conference, Fed Chair Jerome Powell said the central bank is "not even thinking about thinking about raising rates."
Powell also told reporters that it "remains an open question" whether targeting interest rates along the yield curve would usefully complement the Fed's main tools.
Expectations that rates will remain at record lows come as the Fed projects real GDP to nosedive by 6.5 percent in 2020, as the ongoing public health crisis weighs heavily on economic activity.
source..