The Federal Reserve says its low interest rate policies are providing “powerful support” for the economy as it recovers from the coronavirus pandemicWASHINGTON -- The Federal Reserve says that its low interest rate policies are providing “powerful support” for the economy as it recovers from the coronavirus pandemic. Progress on vaccinations helped to reopen the economy and produced strong economic growth over the first half of this year, the Fed noted. But the lingering effects of the pandemic still weigh on the economy, with employment well below pre-pandemic levels. The central bank has kept its benchmark interest rate near zero, while continuing to buy $120 billion a month in Treasury bonds and mortgage-backed securities to put downward pressure on long-term interest rates. Lawmakers will seek details on exactly when the central bank will start cutting back on its bond purchases, and when it will begin raising interest rates.

Source: ABC News July 09, 2021 15:23 UTC