WASHINGTON, July 28 (KUNA) -- The US Federal Reserve affirmed Wednesday it is "committed to using its full range of tools to support the US economy in this challenging time, thereby promoting its maximum employment and price stability goals," as it decided to keep interest rates unchanged.
The Federal Open Market Committee (FOMC) said in a statement issued by the Federal Reserve that that "with progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen."
"The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered," it added. "Inflation has risen, largely reflecting transitory factors."
It noted that "the path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain."
The Committee decided to keep the target range for the federal funds rate at zero to 0.25 percent and expects "it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to two percent and is on track to moderately exceed two percent for some time."
Last December, the Committee indicated that it would continue to increase its holdings of Treasury securities by at least USD 80 billion per month and of agency mortgage-backed securities by at least USD 40 billion per month "until substantial further progress has been made toward its maximum employment and price stability goals."
"Since then, the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings," the statement added.
The statement affirmed that the Committee "will continue to monitor the implications of incoming information for the economic outlook," and "would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals."
"The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments," the statement concluded. (end)