Fed Holds Interest Rates Near Zero, Boosts Inflation Forecast

Contact Your Elected Officials

WASHINGTON—The Federal Reserve announced on June 16 that it would keep U.S. interest rates near zero as “risks to the economic outlook remain.”

The U.S. central bank made a significant revision to its short-term inflation forecast, reflecting large spikes in consumer and producer prices caused by supply-chain bottlenecks and strong household demand.

“Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened,” Fed officials said in a revised statement.

“The path of the economy will depend significantly on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.”

Following a two-day meeting of the Federal Open Market Committee (FOMC), the central bank announced it would hold the federal funds rate at a range of zero to 0.25 percent, in line with expectations. Fed officials could begin to raise interest rates in 2023, earlier than previously forecasted, according to the new projections.

However, a growing minority of committee participants sees a rate increase much sooner than 2023. Seven of 18 participants now predict at least one quarter-point rate hike as soon as 2022.

The committee also made upgrades to its economic forecasts. Gross domestic product is now expected to grow by 7 percent (median) in 2021, compared to the 6.5 percent increase projected in March.

In its announcement, the Fed removed language that stated: “The ongoing public health crisis continues to weigh on the economy.”

“Even so, the recovery is incomplete and risks to the economic outlook remain,” Fed Chairman Jerome Powell said at a post-meeting press conference.

According to the Fed, sectors hit hard by the pandemic remain weak. Fed officials “expect to maintain an accommodative stance of monetary policy,” he said.

BY EMEL AKAN

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Government Shutdown, Health Care, Tax Breaks=Perfect Storm

The shutdown over cuts to health subsidies for the poor stems from Trump’s OBBB plan, which critics say funneled trillions to the wealthy.

3I/Atlas Comet or UFO Arrives Tomorrow!

The 3I/Atlas object is hurtling toward our solar system on a strange path and composition, set to pass behind the sun, obscuring visual and radio tracking.

‘I’d Be Finished’: Vaccine Researcher Trashes Own Study to Save Career

Most doctors comply with the system, following orders to keep their jobs, income, and prestige, even if it means setting aside independent judgment.

Kamala, Please Run Again

Kamala Harris hinted she wants to run for President in 2028, despite poor poll numbers and her loss in 2024. If she runs, the big winners will be the GOP.

Rosie O’Donnell vs. Her Therapist

Rosie O’Donnell's therapist attempted to artfully introduce to her client to the possibility that Rosie's outrage might be performative. It didn’t take.

Government Shutdown Could Cost US Economy $14 Billion: CBO

The government shutdown could cost the U.S. economy up to $14 billion, a new analysis by the CBO said on Oct. 29.

Trump Says SNAP Benefits Will Be Solved for Next Month

President Trump said that he believes Republicans will solve how to fund food stamps, when he was asked about the SNAP and the government shutdown.

Pennsylvania Democrats’ Voter Registration Edge Shrinks Again

State records show the Democratic lead fell from about 686,000 in 2020 to about 178,000 by May 2025, and to 60,000 in the latest count.

Virginia Announces Alternative Food Stamp Program as SNAP Deadline Looms

Virginia is starting a state food stamp program as SNAP faces suspension amid the federal shutdown, pending new congressional funding.

Trump, Japanese PM Sign Critical Minerals, Rare Earths Deal

The U.S. president visited Tokyo on the second leg...

Trump Hikes Canada’s Tariffs by 10 Percent for Not Pulling Anti-Tariff Ad Immediately

Trump announced he will increase tariffs on Canada by 10% after ad by provincial government of Ontario misrepresented President Reagan’s speech on tariffs.

Trump Rolls Back Emissions Rules on Copper Smelters

President Trump issued a proclamation aimed at reversing a Biden-era environmental rule that enforced stricter air emission standards on copper smelters.

Donor Gives $130 Million to Cover Shortfall in Troop Pay During Shutdown

Trump announced on Oct. 23 that an anonymous donor sent $130M to cover military pay during the ongoing government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central