The Federal Reserve System (FRS) of the United States at the end of the meeting on April 28-29 kept the base interest rate at the level of 0-0.25% per annum, according to a press release from the regulator.
The decision coincided with the forecasts of most analysts.
The regulator maintained the base rate after twice, unexpectedly reducing it in March to the level of 0-0. 25% per annum. The price was previously at this level between December 2008 and December 2015. The fed decided to cut rates in response to the severe economic consequences of the coronavirus outbreak.
“The coronavirus outbreak caused the greatest… economic difficulties in the US and around the world. The virus and measures are taken to protect people’s health lead to a sharp decrease in economic activity,” the regulator said. At the same time, inflation is held back by weak demand and a sharp fall in oil prices, the regulator notes.
The health crisis will significantly affect economic activity, employment, and inflation in the short term, and it also poses significant risks to the economic outlook in the medium term, the Central Bank said. The future direction of monetary policy will be determined to take into account many factors, including the state of the labor market, expectations for inflation, and international events.
The fed will continue to buy back mortgage and Treasury securities in the amount necessary to support the market.