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Fed holds interest rates, pledge to support economy

Fed holds interest rates and pledge to support economy

The Federal Reserve held interest rates at the target area between 0% - 0.25% to match market expectations, where central bank pledged to use a full set of tools to support the US economy at this difficult time, thus promoting maximum employment targets and price stability.

The Corona virus outbreak has caused enormous human and economic suffering across the United States and around the world.

The virus and measures to protect public health have caused a sharp drop in economic activity and an increase in job losses, weak demand and a sharp fall in oil prices.

The persistent public health crisis will greatly affect economic activity, employment and inflation in the near term, and will pose significant risks to the economic outlook in the medium term.

It is expected that this interest rate target will be maintained until there is confidence that the economy has weathered recent events and is on the right track to achieving full employment targets and price stability.

The bank will continue to purchase treasury bonds and securities backed by residential and commercial loans in the amounts needed to support the smooth functioning of the market, thereby promoting an effective transition of monetary policy to broader financial conditions.

The dollar index continued to decline at 99.56 after the Federal Reserve announced the stabilization of its monetary policy and pledged to keep interest rates near zero levels until confidence in the performance of the economy.

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