The US Federal Reserve System (FRS), which acts as the country’s central bank, kept its base interest rate at 0-0.25%, as expected by the market. This is stated in the message of the financial regulator following the meeting of its leadership, Trend reports with reference to TASS.
“Committee [по операциям на открытом рынке] decided to maintain the target range for the federal funds rate at 0-0.25% and believes that it would be appropriate to maintain this range until conditions in the labor market reach levels corresponding to the estimates of maximum employment, and the growth of inflation – the target of 2% “, – the message says.
The Fed lowered its forecast for the country’s GDP growth in 2021 to 5.9% from 7%.
At the same time, the American regulator improved the forecast for the growth of the American economy for 2022 and 2023 – to 3.8% from 3.3% and to 2.5% from 2.4%, respectively. In 2024, US GDP is projected at 2%. The Fed also raised its forecast for inflation in 2021 to 4.2% from 3.4%, in 2022 – to 2.2% from 2.1%. In 2023 and 2024, inflation is expected at 2.2% and 2.1%, respectively.
The forecast for US unemployment in 2022 was downgraded to 4.8% from 4.5%. In 2022 and 2023, this indicator is projected at the level of 3.8% and 3.5%, in 2024 – at the level of 3.5%.
The regulator will continue to buy at least $ 80 billion in Treasury bonds monthly, and mortgage-backed securities (MBS) for at least $ 40 billion monthly.