Decision by FOMC to keep rates low during economic recovery
On Wednesday, the Federal Reserve issued a statement from the Federal Open Market Committee (FOMC) regarding interest rates. The central bank of the U.S. has opted to keep rates near zero for the time being.
The FOMC statement said, “Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”
Federal Reserve Chairman Jerome Powell called the U.S. economic recovery “uneven and far from complete.” The FOCM further stated, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.“
As the Lord Leads, Pray with Us…
- For wisdom for the Federal Reserve Chairman and the FOMC as they evaluate the U.S. recovery.
- For discernment as the committee assesses interest rates and the impact on inflation.
Sources: The Federal Reserve, CNBC
