On Wednesday, January 27, the FOMC left the interest rate unchanged at 0.25. All committee members voted for that decision unanimously.
The asset purchase program will continue in the amount of at least $ 120 billion. Further economic prospects will depend on the development of the situation with the coronavirus.
Fed Chairman Jerome Powell said the economy was more resilient than expected. Sufficient and widespread vaccinations will allow the pandemic to subside. Several elements point to improved prospects in the second half of the year.
Despite the positive signals, inflation remains below the target level of 2% and the economy is still far from achieving the Fed’s targets in terms of employment and inflation.
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