Friday, September 17, 2021
News

US Fed keeps interest rates near zero amid inflation

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Washington | Thursday, 2021 9:45:07 AM IST
The US Federal Reserve on Wednesday kept its benchmark interest rate unchanged at the record-low level of near zero amid growing concerns over surging inflation and the rapid spread of the Delta variant.

"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 Fed said in a statement after concluding a two-day meeting, Xinhua reported.

While indicators of US economic activity and employment "have continued to strengthen," the sectors most adversely affected by the pandemic "have not fully recovered", the Fed said.

The Fed also noted that the US economy "has made progress" toward its goals of maximum employment and price stability since December, and the central bank will continue to assess progress in coming meetings.

The Fed has pledged to keep its benchmark interest rate unchanged at the record-low level of near zero, while continuing its asset purchase program at least at the current pace of $120 billion per month until "substantial further progress" has been made on employment and inflation.

At a virtual press conference Wednesday afternoon, Fed Chair Jerome Powell said that "we have some ground to cover on the labour market side."

"I think we're some way away from having had substantial further progress toward the maximum employment goal. I would want to see strong job numbers," he said.

Powell also said that US inflation will "remain elevated" in the coming months before moderating to normal levels due to supply bottlenecks.

"As the economy continues to open, we're seeing upward pressure on prices, particularly because supply bottlenecks in some sectors have limited how quickly production can respond," he said, adding inflation could turn out to be "higher and more persistent" than the Fed expected.

--IANS int/pgh

( 322 Words)

2021-07-29-03:40:02 (IANS)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE WORLD NEWS
Iconic UN building to light up in harmon...
Volcanic rock in Japan attracts many tou...
Ideology, fear of foreign influence forc...
Cuban Prez thanks Mexico for support ami...
Jaishankar meets Russian counterpart Lav...
Territorial tensions becoming more chall...
More...
 
INDIA WORLD ASIA
Biocon Biologics to offer 15 pc stake to...
Aim for next 5 years is to extend free m...
Delhi borders sealed amid SAD's protest ...
Delhi Police prohibits SAD's protest mar...
Mizoram logs 1,121 new COVID-19 cases...
Meerut reports 8 new dengue cases in las...
More...    
 
 Top Stories
Kerala HC denies anticipatory bail ... 
Dutch FM quits over Afghanistan eva... 
Long Covid in kids rarely last beyo... 
Pak to use SCO Summit, UNGA to make... 
Thorough coaching programme reason ... 
Nifty, Sensex at record highs: Covi... 
Jaime King, Antonio Banderas to sta... 
I aim to harness tech for everyone'...