U.S. FED decided to keep the federal funds rate unchanged at 0 to 1/4 percent and expects that it will be appropriate to maintain this target range until labor market conditions will reach the levels consistent with their assessments of maximum employment and, inflation will rise to 2 percent and will on track to moderately exceed 2 percent for some time.
They maintain an accommodative stance of monetary policy until desired outcomes are achieved.
The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have picked up in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy will depend significantly on the course of the virus. 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.