The US Federal Reserve said on Wednesday that it kept its benchmark interest rate unchanged between the 0.00% – 0.25% range during its two-day meeting.
The Federal Open Market Committee (FOMC) in its statement removed “moderation” in the pace of recovery of economic activity and employment, and replaced it with “indicators have turned up recently.”
Although sectors most adversely affected by the coronavirus pandemic remain weak, the central bank said inflation continues to run below 2%.
“The path of the economy will depend significantly on the course of the virus, including progress on vaccinations,” it said. “The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.”
The Fed also noted it will continue its asset purchase program to relieve the world’s largest economy, in which the central bank buys at least $120 billion of bonds every month.