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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