National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Fed Keeps Benchmark Interest Rate Near Zero
The Federal Reserve said Thursday it would maintain the federal funds rate at the current level of 0% to 0.25%. The central bank’s Federal Open Market Committee plans to maintain the current range “until labor market conditions have reached levels consistent with the committee’s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.”
In announcing its stance, the Fed cited the impact of the COVID-19 pandemic. “The path of the economy will depend significantly on the course of the virus,” according to the FOMC statement. “The 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.”
The Fed also plans to increase its holdings of Treasury securities and agency MBS “at least at the current pace.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
