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Fed Leaves US Rates Unchanged, Says Coronavirus Still Determines Course of US Economy

WASHINGTON (Sputnik) - The Federal Reserve said in a statement on Thursday that its Federal Open Market Committee has left US interest rates unchanged for a ninth straight month and the novel coronavirus will largely determine the course of the economy.
Sputnik

"The Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent," the statement said. "The path of the economy will depend significantly on the course of the virus."

The Federal Reserve issued the statement after the conclusion of the Federal Open Market Committee’s two-day meeting for November.

The US central bank also said it will increase in coming months its holding of US Treasury securities and agency mortgage-backed securities to sustain what it called "smooth market functioning" and help foster accommodative financial conditions that would support the flow of credit to households and businesses.

The US economy rebounded by 33.1 percent in the third quarter, after shrinking 31.4 percent in the previous three months and 5 percent in the first quarter.

Despite the rebound, the economic outlook for the United States remains uncertain with a rash of new coronavirus cases reported across the nation. Some 9.5 million cases have been reported in the United States and more than 233,000 virus-related fatalities.

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