Fed brightens outlook for US economy and holds rates steady
Fed chair Jerome Powell says US recovery has been faster than expected but it's not yet time to discuss scaling back monetary support
Washington — Federal Reserve officials strengthened their assessment of the economy on Wednesday and signalled that risks have diminished while leaving their key interest rate near zero and maintaining a $120bn monthly pace of asset purchases.
“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,” the federal open market committee (FOMC) said in a statement after the conclusion of its two-day policy meeting. “The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors.”..
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