Federal Reserve Holds Rates Near Zero

The Federal Reserve has decided to keep its benchmark interest rate between 0 and 25 basis points, citing a downbeat economic outlook due to the COVID-19 pandemic. The Fed acknowledges easier financial conditions but expects growth to contract by 6.5% this year, with unemployment reaching 9.3% by the end of 2020. Inflation is projected to remain below the 2% target. The Fed's dot plot indicates no change in rates through 2022, although some officials foresee a potential rate increase by then. The Fed remains committed to using its tools to support the economy and will incorporate health information into its assessments.

What is the current range of the Fed's benchmark interest rate?

How does the Fed view the economic outlook for growth?

What impact has the coronavirus outbreak had on the US economy according to the Fed?

What are the Fed's projections for unemployment by the end of 2020?

What is the Fed's target for PCE inflation?