Fed Chief Powell: We will keep rates close to zero in 2023

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The US Federal Reserve will continue its loose monetary policy. Fed Governor Jerome Powell announced this on Wednesday after a meeting of the US Federal Reserve System’s Open Market Operations Committee.

The key interest rate will remain in the range of 0 to 0.25 percent, and the Fed expects this level for 2023. At the same time, the Federal Reserve has confirmed that it will continue to buy $ 80 billion in government bonds and $ 40 billion a month in other securities. The US central bank said the US economy was showing signs of recovery, but until the pandemic was fully controlled, there was no reason to tighten monetary policy screws.

The Federal Reserve has also issued an updated macroeconomic forecast until 2023. For this year, the Fed predicts an increase in economic performance by 6.5 percent, which is a better number than it expected last December. Although inflation is expected to rise above 2% this year, it should return to 2% next year and next year. The unemployment rate is expected to reach 4.5 percent this year and fall slightly in the next two years.

Shares on Wall Street responded to growth in Powell’s performance. The Dow Jones index approached 33,000 points, the S&P 500 four thousand points.


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