Fed kept federal funds rate unchanged at 0-0.25% as widely expected. It also maintain the pledge to use its “full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.” Also, Fed will continue to ” increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace”.
Fed acknowledged that “economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”
Otherwise, the statement was largely unchanged from the prior one.
