WASHINGTON (Pakistan Point News / Sputnik - 17th December, 2020) The Federal Reserve said in a statement on Wednesday that it has decided to maintain the interest rate in a zero to 0.25 percent range and will buy more assets to better support the US economy affected by the novel coronavirus.
"The Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent," the statement said. "In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals."
The Federal Reserve explained the asset purchases would help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
