Federal Reserve says rates to stay near zero until 2023

By Michelle Price
Special to the UCBJ

WASHINGTON – The Federal Reserve wrapped up its final two-day policy meeting before the November election on Wednesday committing to keep interest rates near zero until the end of 2023.

“The Committee seeks to achieve a maximum employment and inflation rate of 2% over the longer term,” the Fed said in its official statement. “With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time and longer-term inflation expectations remain well anchored at 2%.”

The Committee feels that the COVID-19 pandemic will determine the future of the economy. The statement continued, β€œThe ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”

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