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Fed to keep providing aid and sees no rate hike through 2022

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WASHINGTON – The Federal Reserve said Wednesday that it will keep buying bonds to maintain low borrowing rates and support a U.S.

economy mired in a deep recession with high unemployment. And it said nearly all its policymakers foresee no rate hike through 2022.The Fed has cut its benchmark short-term rate to near zero.

Keeping its rate ultra-low for more than two more years could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by still-widespread business shutdowns.

Stock prices rallied modestly on the news after having been mainly lower before the Fed issued its latest policy statement at 2 p.m.

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