The US Federal Reserve will continue to buy government bonds

The US Federal Reserve will continue to buy government bonds

The US Federal Reserve will continue to buy government bonds until the economy makes "significant" progress. The Federal Reserve (Fed) also added that short-term interest rates will continue to stay close to zero. The US Federal Reserve last cut its key interest rate in March, cutting it by 100 basis points to between 0 and 0.25%. At the same time, it launched a $ 700 billion (€ 574.29 billion) quantitative easing program to support the economy struggling with the first wave of the new coronavirus pandemic. At the same time, central bank officials improved the outlook for the economy next year compared to other estimates from September. More likely to be a more optimistic estimate were vaccines, which countries have gradually begun to approve. Regarding unemployment, the Fed most recently said it could fall to 5% by the end of 2021. It currently reaches 6.7%.