U.S. Fed hold rates at zero, but projects two hikes by end of 2023
Updated: 2021-06-17 09:54:30 KST
Officials at the Federal Reserve agreed on Wednesday to hold the benchmark policy interest rate near zero, the same rate it's been at since March 2020.
"With regard to interest rates, we continue to expect that it will be appropriate to maintain the current zero to one quarter percent target range for the federal funds rate until labor market conditions have reached levels consistent with the committee's assessment of maximum employment, and inflation has risen to 2% and is on track to moderately exceed 2% for some time."
The decision was unanimous among the voting members.
However, in a statement after its two-day meeting, the Federal Open Market Committee said eleven of its 18 members saw at least two hikes by the end of 2023, with seven seeing a move as early as next year.
Thirteen favored at least one rate hike by the end of 2023.
The committee said progress on the vaccination front has reduced the spread of COVID-19 in the U.S., allowing for an increase in economic activity and employment.
Currently,.. the recovery is gathering strength as business restrictions are being lifted, and social activity is increasing across the U.S.
The Fed also announced that it will continue to buy at least 120 billion U.S. dollars a month in agency mortgage-back securities and U.S. Treasuries as part of its asset purchase program.
Lee Seung-jae, Arirang News.