WASHINGTON, Sept 22 (KUNA) -- The US Federal Reserve kept interest rates unchanged Wednesday 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 (Federal Open Market Committee) assessments of maximum employment and inflation has risen to two percent and is on track to moderately exceed two percent for some time."
The Federal Reserve said in a statement that 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."
It added 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 statement affirmed that the Committee "seeks to achieve maximum employment and inflation at the rate of two percent over the longer run."
"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," the statement noted.
It added that "since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted."
"In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook," it said.
"The Committee 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." (end)