The Federal Reserve left interest rates steady after completing its two-day Federal Open Market Committee (FOMC) policy meeting.
The central bank alluded to a “strong” labor market and moderate U.S. economic growth for its decision to leaves rates in the rage of between 1.50 percent and 1.75 percent. The Fed statement was little changed from its December meeting, noting that the present fed funds rate is “appropriate to support sustained expansion of economic activity.”
It did raise the interest it pays financial institutions for excess reserves by five basis points to 1.60 percent.
The Fed reaffirmed its commitment to higher inflation.
Fed Chair Jerome Powell did not offer new guidance about its quantitative easing/not quantitative easing measure of buying $60 billion of Treasurys. All we know is that it will remain in place until at least April.
Analysts were surprised that the Eccles Building was quiet about the coronavirus.
Yields on U.S. Treasury securities were relatively unchanged following the announcement, while the leading stock indexes pared their gains.
In the end, a largely uneventful FOMC meeting.
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