Fed Will Keep Interest Rates Near Zero

“The Federal Reserve kept interest rates near zero and indicated that’s where they’ll stay as the economy recovers from the coronavirus pandemic,” CNBC reports.

“Along with the rate decision, central bankers projected Wednesday that the economy will shrink 6.5% in 2020, a year that saw an unprecedented halting of business activity in an effort to combat the coronavirus pandemic. However, 2021 is expected to show a 5% gain followed by 3.5% in 2022, both well above the economy’s longer-term trend.”

The Wall Street Journal says the Fed projected “no plans to raise interest rates through 2022 and said they were committed to providing more support to the economy following shutdowns to contain the coronavirus.”