Fed releases rate decision and economic outlook by Investing.com

Investing.com – The Federal Reserve has kept its rate stable between 0.00% and 0.25% as the Fed continues to want to support the US economy which is recovering from the Corona virus. The Fed also maintained its monthly $ 120 billion bond purchase program.

Prior to the decision, it had fallen to $ 1,799.49 per ounce. The American hit a record 92.517.

He dropped 122 points.

“This is supposed to be a meeting where the whole Fed is focused on monetary tightening,” said Mark Cabana, head of US short-term rate strategy at Bank of America. “Our view is that the market will eventually listen to an accommodating tone from Federal Reserve Chairman Jerome Powell.”

The market awaits the announcement from the Chairman of the Federal Reserve.

The Fed sees in its published economic forecast that the US economy continues to improve, despite epidemic fears.

The price of gold fell sharply after the report was released.

The Fed believes that sectors heavily affected by the epidemic have improved, but have not fully recovered. The Fed also indicated rising inflation, which mainly reflects temporary factors. The Fed adds: “Financial conditions remain soft, reflecting the Fed’s policy to support the economy and cash flow to homes and businesses.”

As for the economic outlook, the Federal Reserve has maintained its positive expectations for the highest growth rate recorded by the economy since World War II. The US market is awaiting GDP data tomorrow.

The Federal Reserve is currently facing concerns about high inflation, with consumer prices hitting the highest levels since the 2008 global financial crisis. However, Fed officials point out that the rise in inflation will subside once supply chains are released from pressure and demand returns to normal levels, for some products, especially used cars.

“Last December, the committee said it would increase its holdings by at least $ 80 billion per month and buy at least $ 40 billion in mortgage-backed securities. The program will continue until the economy is meeting the objectives of full employment and price stability. ” Since then, the economy has made progress towards these goals, and the committee continues to assess this progress at future meetings.