US: Fed leaves rates unchanged, stays prepared to adjust policy stance as appropriate
|The Federal Open Market Committee (FOMC) on Wednesday announced that it left the benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25% as widely expected.
Follow our live coverage of the FOMC decision and the market reaction.
Key takeaways from policy statement as summarized by Reuters
"Fed will continue to increase bond purchases by at least $80 bln/month of treasuries and $40 bln/month of MBS until substantial further progress made on maximum employment and price stability goals."
"Fed vote in favour of policy was unanimous."
"Will maintain current fed funds rate until labour market has reached maximum employment and inflation has risen to 2% and is on track to exceed that for some time."
"Will maintain the accommodative policy until inflation runs moderately above 2% for some time, so that inflation averages 2% over time and longer-term inflation expectations remain well-anchored at 2%."
"Fed is prepared to adjust monetary policy stance as appropriate if risks emerge that could impede the attainment of the Fed’s goals."
"Indicators of economic activity and employment have turned up recently following a moderation in the pace of the recovery."
"Inflation continues to run below 2%."
"Overall financial conditions remain accommodative, reflecting measures to support the economy and the flow of credit to US households and businesses."
"Sectors most adversely affected by the pandemic remain weak."
"Path of economy will depend significantly on the course of the virus, including progress on vaccinations."
"Public health crisis continues to weigh on economic activity, poses considerable risks to the outlook."
"Will conduct overnight reverse repurchase agreement with a per-counterparty limit of $80 billion per day, effective March 18, 2021."
"Increase in the per-counterparty limit for on rrp from $30 billion per day reflects the evolution of US dollar funding markets and helps ensure the facility supports effective policy implementation."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.