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Federal Reserve keeps rates steady, citing slight pick up in economy activity

2020-07-30 8

미 연준, '제로금리' 유지…"경제지원 모든 수단 사용"

The Federal Reserve left the rates near zero percent.
It said that U.S. economic growth remains well-below pre-pandemic levels, but noted some pick-up in economic activity.
Kim Dami has the details.
In a widely expected move,... the Federal Reserve kept its benchmark interest rate steady at a target of zero percent to a quarter of a percent.
Following a two-day policy meeting that ended Wednesday, the Federal Open Market Committee pointed out that economic activity has picked up somewhat in recent months.
"In recent months, economic activity picked up as the economy began to reopen. Many businesses opened their doors. Factories restarted production and more people left their homes to engage in various activities. As a result, household spending looks to have recovered about half of its earlier decline."
Powell highlighted further that the economic path will depend significantly on the course of the coronavirus.
He vowed to use full range of tools to support the U.S. economy in such a challenging environment.
The committee, however, did not further indicate what it would take to change rates.
The interest rate has remained the same since March...in the early days of the pandemic.
The Fed slashed its benchmark interest rate to zero percent to a point-two-five percent from the previous one to one and a quarter percent on March 15.
Along with holding the rates near rock bottom,... the central bank will also extend its lending and credit initiatives until at least the end of the year.
Kim Dami, Arirang News.