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Fed expects to keep its key rate near zero through 2023

Sumary of Fed expects to keep its key rate near zero through 2023:

  • The Fed also said it would continue its monthly purchases of $120 billion in bonds, which are intended to keep longer-term borrowing costs low…
  • That suggests that the central bank will be close to meeting its goals by 2023, when it expects inflation to exceed its 2% target level and for unemployment to be at 3.5%, which is where it was before the pandemic struck…
  • At a news conference after the Fed latest policy meeting, Chair Jerome Powell stressed that the central bank wants to see substantial improvement in the job market and economy and won’t reverse its low-rate policies based solely on forecasts…
  • There were signs, though, that at least some Fed officials are edging closer to reining in the central bank ultra-low-rate policies…
  • The central bank indicated that four of the 18 policymakers now expect a rate hike in 2022, up from just one in December….

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