According to the results of the July meeting, the US Federal Reserve System (FRS) kept the base interest rate at the level of 0-0.25% per annum, the regulator said in a press release.
The decision coincided with the forecasts of most analysts.
The regulator has already kept the base rate for the eleventh time after it twice unscheduled lowered it in March 2020 to the level of 0-0.25% per annum. Previously, the rate was at this level in the period from December 2008 to December 2015. The Fed decided to cut the rate in response to the severe economic consequences of the coronavirus outbreak.
The Fed also reiterated that it intends to keep interest rates low until the maximum employment level and inflation are reached at 2% in the long term.
“The path of the economy will significantly depend on the spread of the virus. Progress in vaccination is likely to continue to reduce the impact of the public health crisis on the economy. Still, risks to the economic outlook remain,” the regulator said in a press release.
US inflation will remain at an elevated level for months, Federal Reserve Chairman Jerome Powell said.
“Inflation has increased markedly and is likely to remain at an elevated level in the coming months before becoming more moderate as the economy continues to open up and cash costs recover,” Powell said at a press conference.