Fed Will Keep Interest Rates Near Zero

new video loaded: Fed Will Keep Interest Rates Near ZerotranscriptBacktranscriptFed Will Keep Interest Rates Near ZeroJerome H. Powell, the Federal Reserve Chair, said Wednesday that the central bank will keep interest rates near zero to support the economy as coronavirus cases surge nationwide, adding that “a full economic recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities.”The ongoing surge in new Covid-19 cases, both here in the United States and abroad, is particularly concerning, and the next few months are likely to be very challenging. A full economic recovery is unlikely until people are confident that it is safe to engage, re-engage in a broad range of activities. With regard to interest rates, we continue to expect it will be appropriate to maintain the current zero to one-quarter percent target range for the federal funds rate until labor market conditions have reached levels consistent with the committee’s assessment of maximum employment and inflation has risen to 2 percent, and is on track to moderately exceed 2 percent for some time. The case for fiscal policy right now is very, very strong. And I think that is widely understood, I would say now. The details of it are entirely up to Congress, but with the expiration of unemployment benefits, some of the unemployment benefits, the expiration of eviction moratoriums with the virus spreading the way it is, there’s a need for households and businesses to have fiscal support. And I do think that, again, I think that is widely understood.Recent episodes in BusinessShow more videos from Business


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