1.27.21
The Federal Reserve announced on Wednesday its policy decisions to keep interest rates at the current low levels and initiating a bond purchase program of $120 billion per month, keeping “stimulative measures in place until its goals of lower unemployment and 2% inflation are achieved.” The Fed’s policy statement included an updated assessment of the economy: “[t]he pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic.” In comments during the press conference following the release, Chair Powell addressed the pandemic and expectations on the impact of vaccine rollout on the economy over the near term: “We think it’s going to be a struggle,” he said, adding “[t]he pandemic still provides considerable downside risks to the economy.”