The U.S. Federal Reserve announced the results of its first interest rate meeting this year in the early hours of Hong Kong time today (27th), announcing that the interest rate will remain unchanged at 0 to 0.25%, and indicating that it will raise interest rates in March.
The Federal Reserve said in a statement that economic activity and employment indicators continued to strengthen, and the sectors most hit by the pandemic had improved in recent months, but were affected by the recent surge in new coronary pneumonia diagnoses.
Steady growth in the number of occupations in recent months, a sharp reduction in unemployment, and persistent supply and demand imbalances related to the pandemic and the reopening of the economy are responsible for high inflation.
The bureau's goal is to achieve the highest employment rate and maintain inflation at about 2% in the long run.
To achieve these goals, the bureau has decided to maintain the federal funds rate between 0 and 0.25 percent.
With inflation well above 2 percent and a strong labor market, the Committee expects that the target range for raising the federal rate will soon become appropriate.
The committee decided to continue reducing the pace of net asset purchases on a monthly basis through early March.
Beginning in February, the committee will increase its holdings of Treasuries and mortgage-backed securities by at least $20 billion per month, a move that will continue to promote moderate market functioning and easy financial conditions, supporting the flow of credit to households and businesses.
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