Fed Holds Rates at Zero to Support Economy

In response to the continuing tremendous human and economic hardship caused by the coronavirus pandemic across the United States, the Federal Open Market Committee today voted unanimously to keep the target range for the federal funds rate steady at 0 to 0.25% to help aid the flow of credit to U.S. households and businesses. The Committee expects to maintain this target range until “it is confident that the economy has weathered the recent public health crisis and is back on track to meet its maximum employment objective and price stability goals.”

The FOMC stated it remains committed to continue monitoring incoming economic data, “including information related to public health, global developments and muted inflation pressures,” in determining future rate adjustments.

To further help support credit flow for households and businesses the Fed will continue to purchase Treasury securities and agency residential and commercial mortgage-backed securities in the appropriate amounts to support smooth market function.