The Fed leaves interest rates unchanged. The cost of money remains unchanged between 0 and 0.25%.
The US economy has made progress towards Fed targets, the central bank said at the end of the two-day meeting, noting that inflation has risen largely reflecting transitory factors.
Risks to the outlook remain even as data shows the economy has continued to strengthen, the Fed says. "The sectors hardest hit by the pandemic are showing improvements but have not fully recovered," adds the Fed, stating that the economy "depends on the virus. Advances on vaccinations are likely to continue to reduce the effects of the health crisis on ' economy, but the risks tooutlook remain ".
"The Fed has decided to keep rates close to zero and its purchase plan. Measures that ensure support for the economy." This was stated by Fed President Jerome Powell, underlining that "labor market conditions have improved, but there is still a long way to go".
Inflation will remain high before starting to fall, Powell says and stresses that the Fed will act if inflation remains too high.
