Fed vows to keep interest rates near zero until inflation rises

[turbinetree]

Source: Reuters

BUSINESS NEWS
SEPTEMBER 16, 20201:10 AM UPDATED 28 MINUTES AGO

By Ann Saphir, Howard Schneider

5 MIN READ

WASHINGTON (Reuters) - The Federal Reserve kept interest rates pinned near zero on Wednesday and made a bold, new promise: to keep them there until inflation is on track to “moderately exceed” the U.S. central bank’s 2% inflation target “for some time.”

The new guidance marks a monetary policy shift, first announced by the Fed last month, that is aimed to offset years of weak inflation and allow the economy to keep adding jobs for as long as possible.

“Effectively what we are saying is that rates will remain highly accommodative until the economy is far along in its recovery,” Fed Chair Jerome Powell said in a news conference following the release of the central bank’s latest policy statement and economic projections.

“That should be a very powerful statement in supporting economic activity” and returning inflation to the Fed’s 2% inflation goal faster, he said, adding that he thinks the forward guidance will be “durable”

(This story corrects to show rate path expectations through 2023 in 11th paragraph)

Reporting by Ann Saphir and Howard Schneider; Editing by Paul Simao


Read more: https://www.reuters.com/article/us-usa-fed/fed-vows-to-keep-interest-rates-near-zero-until-inflation-rises-idUSKBN2670IX

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[soothsayer]

1. So lend to the states at zero already

[bucolic_frolic]

2. There is economic contraction from covid deaths

and people are terrified financially, and they don't value consumption as much as they did. We will live on less, in the aggregate. This is anathema to Banksters' pro-growth forever policy. And Powell is a Trump lackey and an idiot.

[Mr.Bill]

3. Anyone who looks at the prices when they grocery shop

knows that inflation is pretty crazy already.

[BamaRefugee]

4. Used cars selling at the highest price increase in 51 years.

[DENVERPOPS]

7. Agree Mr. Bill

No one seems to notice that the packages of whatever have become significantly smaller AND carry a higher price than before.....
The so called rate of inflation and consumer price index were altered in the way they were calculated under Regan to reduce the numbers so he would look good.............

I could go on and on about all the things I watched DaddyBush/Cheney/Rumsfeld/etc did during the "Reagan" administration.

[yaesu]

5. banksters get that free money then turn around and charge 25% interest. nt

[StClone]

10. I surmise much of that free money is inflating the Stock Market

...that and lack of oversight.

[Le Roi de Pot]

6. I refi'ed my mortgage at 1.875%

this move will save me 44000 in interest costs

[turbinetree]

9. Glad you could do that, I really wish they would suspend mortgage payemts

for at least a year instead of offering "forbearance, bankruptcy" deed in lieu of forecloser, for example" some people just don't have jobs to qualify for a loan, right now ................. and are being evicted ......................

[Merlot]

8. And yet credit card companies can still charge 15-25% interest.

[roamer65]

11. $3000 gold here we come.

[Shipwack]

12. I'm sure they'll re-evaluate this if Biden wins... nt

[Yavin4]

13. "for some time." means that when Biden is president and pushes for fiscal policies that actually...

help average Americans. Then, watch those rates soar.

[CountAllVotes]

14. Hope you are correct

My IRA is in a 5-year CD at the moment.

The thought of buying another one at the going rate of .05% makes me quite sick!

You spend your entire life saving for the future and when the future arrives, you cannot get even 1% for your retirement account.

FUCK YOU DON THE CON!

DUMP TRUMP!!!