The US Federal Reserve announced on the 5th that it would maintain the target range of the federal funds rate between zero and 0.25%, in line with market expectations.
The Federal Reserve issued a statement after the two-day monetary policy meeting that the persistent public health crisis will continue to exert pressure on economic activities, employment and inflation in the short term, and pose considerable risks to the economic outlook in the medium term. U.S. economic activity and employment continued to recover, but still far below the level at the beginning of the year. Weak demand and falling oil prices restrain consumer price increases. At the same time, the overall financial environment in the United States is still relaxed, partly due to the economic support policies and the credit flowing to American families and enterprises.
The Federal Reserve said economic development would largely depend on the development of the epidemic. The Fed is committed to using all tools to support the U.S. economy and to maintain a loose monetary policy stance until maximum employment and a long-term inflation target of 2% are achieved. At the same time, in the next few months, the Federal Reserve will increase its holdings of U.S. Treasury bonds and institutional mortgage-backed securities at a rate no less than the current rate, so as to maintain the smooth operation of the market and create a relaxed financial environment.
At a news conference held after the meeting, US Federal Reserve Chairman Colin Powell said that the reopening of the economy will help the economy rebound rapidly, but in recent months, the U.S. employment market and the pace of economic recovery have slowed down, and the overall economic activity is still far below the level before the epidemic, and the economic outlook is "very uncertain".
Powell said that the recent increase in confirmed cases of new crown in the United States is worrying, and there is a risk of further spread of the epidemic, putting pressure on the sustained economic recovery. The Fed will maintain a loose monetary policy stance and maintain current interest rates to help the economy recover. He said it will be some time before economic activity and employment levels return to the levels at the beginning of the year, and sustained monetary and fiscal policy support is needed.
Since the outbreak of the new crown epidemic in the United States, the Federal Reserve has issued monetary easing policies to support the U.S. economy. In March, the Federal Reserve lowered its target range of the federal funds rate to zero to 0.25%.