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.