Economics
Fed Stays in Holding Pattern With Rates and Asset Purchases Unchanged
- Fed chair stresses that more fiscal, monetary support needed
- FOMC says virus to weigh on economy, poses considerable risks
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Federal Reserve Chair Jerome Powell opened the door to a possible shift in the central bank’s bond purchases in coming months, saying that more fiscal and monetary support are needed as rising Covid-19 infections cloud the outlook for the economic recovery.
“At this meeting my colleagues and I discussed our asset purchases,” Powell told reporters Thursday after the Fed kept interest rates near zero and held bond purchases at a $120 billion monthly pace.