US Fed keeps interest rates near zero amid poll uncertainty (Ld)

Washington, Nov 6 : The US Federal Reserve has kept its benchmark interest rate unchanged at the record-low level of near zero while making no change to its pace of asset purchases amid election uncertainty and coronavirus resurgence concerns.
“Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year,” the Fed said in a statement on Thursday after concluding a two-day policy meeting, adding the path of the US economy will depend significantly on the course of the coronavirus, Xinhua news agency reported.
“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,” the Fed said.
While pledging to use its full range of tools to support the US economy “in this challenging time”, the central bank decided to maintain the target range for the federal funds rate at 0-0.25 per cent and continue its asset purchase program at the current pace of $120 billion per month.
“The recent rise in new Covid-19 cases, both here in the US and abroad, is particularly concerning. All of us have a role to play in our nation’s response to the pandemic,” Powell said, adding a full economic recovery is unlikely until people are confident that it’s safe to re-engage in a broad range of activities.
Powell also noted that more fiscal and monetary policy support is needed to bring the US economy back on track to its pre-pandemic levels.