The U.S. Fed or Federal Reserve pledged to maintain at least the current pace of asset purchases and projected interest rates will remain near zero through 2022.
Chairman Jerome Powell committed the central bank to using all its tools to help the economy recover from the coronavirus.
“We’re not even thinking about thinking about raising rates,” he told a video press conference Wednesday. “We are strongly committed to using our tools to do whatever we can for as long as it takes.”
U.S. stocks fluctuated and the dollar slumped as investors assessed the Fed’s views on the economy.
The American economy faces “considerable risks” over the medium term, the Fed said in its statement.
U.S. Fed Holds Rates Through 2022, to Keep Buying Bonds
