U.S. Fed Affirms Policy Rate at 0.25% until the Economy Gets Back on Track

In the policy statement on Wednesday, April 29, 2020, the U.S. Federal Reserve (Fed) left its policy rate at a target range of 0% to 0.25%, and ensured that the recovery will be as robust as possible, once it comes.

 

The Fed pledged to maintain its historically low policy rate until it is comfortable that the U.S. economy is back on track, which includes full employment returns and inflation to return to around the Fed’s long-stated 2% goal.

“We’re going to not be in any hurry to withdraw these measures or to lift off. We’re going to wait until we’re quite confident that the economy is well on the road to recovery,” said Fed Chairman Jerome Powell in the statement last night. “We will continue to use our tools to ensure that the recovery, when it comes, will be as robust as possible”.

Fed’s Charmain did not mention further bond purchase in his statement last night, but only said that the Fed will continue as needed.