FED Did Not Change the Interest Rate

FED Did Not Change the Interest Rate The FED did not change the interest rate. The US Federal Reserve (FED) stated that bond purchases will continue. The US Federal Reserve (FED) did not negate market expectations and kept the interest rate stable. In the statement made by the FED, it was reported that federal funding rates were left in the target band of 0 - 0.25 percent. The interest on the excess reserves was kept at 0.10 percent. In addition, the FED did not make any changes in the asset purchase program. At its meeting dated 15-16 September, the FED gave the message that the US economy will keep the interest rates constant until 2023 as a precaution against the problems caused by the pandemic.   Bond Purchases Will Continue As It Is The bank reiterated its determination to use all tools to support the US economy and announced that bond purchases will continue as it is. In the statement made by the FED, it was stated that weakening demand and low energy prices kept inflation down, verbal guidance in the supportive monetary policy continues, the pandemic poses a significant risk on the economic outlook, and the recovery path of the economy depends on the course of the coronavirus pandemic. FED Chairman Jerome Powell stated that the increase in cases was alarming and he did not expect any more restrictions from the government. Emphasizing that they believe the bond purchase programs support the economy, Powell said that they will continue to review their asset purchases.