The fed meeting on April 29th addressed the fact that they are going to use all the tools in their arsenal to get the economy back. It looks like their main goal is to instill some stability in the market. As such, they will be keeping rates low for a while.
“The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the committee said in its post-meeting statement. “The Committee 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 commitment represents a pledge to hold rates near zero and keep them there until full employment returns and inflation gets back to around the Fed’s long-stated 2% goal.
“We’re going to not be in any hurry to withdraw these measures or to lift off. We’re going to wait until we’re quite confident that the economy is well on the road to recovery,” Fed Chairman Jerome Powell said in a post-meeting news conference.
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