Fed: Economy is Recovering but Remains Below Pre-Crisis Levels

The United States Federal Reserve has expressed commitment to using its full range of tools to support the economy in the face of the Coronavirus crisis.

The target range for the federal funds rate has been kept at 0% to 0.25% and the Fed expects it will be appropriate to maintain this target range until its goals are achieved.

The aim is to reach maximum employment and price stability goals.

The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.

FOMC expects to maintain an accommodative stance of monetary policy until these outcomes are achieved, according to the statement issued on Thursday.

Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year.

Weaker demand and earlier declines in oil prices have been holding down consumer price inflation.

Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.