Fed keeps interest rate steady

Wednesday, 16. June 2021 20:00

The United States Federal Reserve announced on Wednesday that the members of its Federal Open Market Committee (FOMC) voted unanimously to leave the key interest rate unchanged near zero.

The central bank stated that the indicators of the country's economic activity and employment have strengthened amid rising vaccinations and strong policy support. Even the most pandemic-affected sectors have shown improvement, albeit they remain weak, the committee said.

Additionally, the Fed warned that inflation has climbed up, but attributed the increase to "transitory factors." Nevertheless, the headline inflation expectation for this year has been raised to 3.4%, while the majority of FOMC members now predict two rate hikes in 2023.

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Breaking the News / MD