Federal Reserve Maintains Interest Rates and Level of Asset Purchases

The United States Federal Reserve announced on Wednesday that it has decided to maintain interest rates unchanged at a 0-0.25% range, and the current pace of asset purchases at $120 billion a month.

The Fed will continue to increase its holdings of Treasury securities by $80 billion per month and mortgage-backed securities by $40 billion per month.

The decision was announced following a two-day meeting for the Federal Reserve Open Market Committee (FOMC) that concluded today.

The Board of Governors of the Federal Reserve System also voted unanimously to establish the interest rate paid on reserve balances at 0.15%, effective July 29, 2021.