The U.S. Federal Open Market Committee (FOMC) left the target range for the federal funds rate at 0-0.25 percent, in line with the futures’ market expectations. The committee noted that the ongoing health crisis represents short- and medium-term risks to the economic outlook, although it did point out the recent improvement in economic data. The target interest rate range is expected to remain at this level until the committee is confident that the economy has weathered the storm, meaning full employment and inflation at or even above its 2 percent target and maintaining that rate for an extended time period. According to the committee’s forecast, the current emergency rate level will remain in place at least through 2023, adding another year of emergency-level rates to its forecast.
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