US Fed keeps benchmark interest rate unchanged; Powell says economy loses steam



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US Fed keeps benchmark interest rate unchanged; Powell says economy loses steam

In what could be contemplated as an intransigent stance to battle past the pandemic-driven fiscal downturns, US Federal Reserve had kept its benchmark borrowing cost unchanged following a two-day long meet of policymakers as anticipated on Wednesday and had pledged to continue its monthly bond repurchase program until solid signs of an emergence from the pandemic-propelled pandemonium, reiterating again to hold on to its dovish stance on overnight lending costs despite an unsustainable uptick in the money markets what analysts said were largely prodded by the latest Fed moves.

, Apart from that, while the US Central Bank had held its benchmark borrowing cost unchanged at 0.25 per cent, US Fed had also raised vociferous concerns over a slowdown in the pace of recovery on Wednesday’s FOMC minutes.

Besides, in a news conference followed by the two-day long meet of Fed policymakers, US Fed Chair Jerome Powell was quoted saying that the US economy had shown an utter resilience amid a raging-pandemic outbreak with major industries likes of financial services, housing and others adapting extraordinary measures to grapple with the fiscal downturn.

Fed’s Powell vows to continue crisis-fighting mode until labour market recovery

Apart from that, speaking in the post-FOMC minutes news conference, Fed Chair Powell had also flagged a red-light over a growing number of job losses in December adding a large chuck of the jobs losses in the meadows of a pandemic-led murmur would unlikely to get back into a payroll in a near-term outlook, while Powell had vowed to continue Central Bank’s rescue effort until an arrival of a solid sign of recovery adding “You cannot adapt motels, sports venues, movie theatres, restaurants, bars, to function during a pandemic.

That is millions and millions of people. You are just going to have to defeat the pandemic ... We have not done it yet. We need to finish the job. It is within our power to do that as a country this year”. Nonetheless, Fed’s Powell had praised Biden Administration’s role to quicken up a mass-scale vaccination process.