Categories: Business

US Federal Reserve keeps benchmark interest rate at zero

Photo: AP IMAGES

US Federal Reserve keeps benchmark interest rate at zero

new Delhi. The Federal Open Market Committee has not made any changes in rates, keeping interest rates close to zero. Major interest rates have been kept unchanged between 0 and 0.25 per cent. With this, the Federal Reserve said that it is ready to take all possible steps to revive the US economy amid the epidemic. The Federal Reserve said that recovery in the economy will determine when the Corona virus crisis is under control. The Federal Reserve gave clear indications that the rates could be maintained at levels close to zero as long as necessary.

In a statement issued after a two-day meeting, the Federal Reserve said that the direction of the economy will depend on the movement of the virus. According to the Fed, there has been some improvement after a sharp decline in economic activity and employment, although still well below the initial level of the year. The Fed reiterated once again that the epidemic has increased the risk of the economy outlook significantly over the medium term. And federal funds' rates can remain close to zero until there is confidence that the economy is out of trouble and moving towards the goal of maximum employment and price stability. At the same time, the Federal Reserve also indicated to take new steps in the coming times to support the economy, so that the economy can be speeded up by improving the cash flow in the system.

The decision to keep the rates close to zero was taken unanimously in the meeting. The Federal Reserve has maintained its benchmark rates near zero since the onset of the epidemic. Along with this, several schemes have also been announced to support the financial market. These steps have helped the investors to stay in the market. However, new concerns about recovery are coming out due to the ever increasing number of corona patients.

This post was published on July 30, 2020 2:00 am

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