The latter part of policy is a two-pronged effort to support an economy that grew strongly to start 2021 as well as to support market functioning at a time when 30-year mortgages still go for around 3%.
Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S.
“The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain,” the statement said.
In the statement, “the Fed offered no hints that it was considering slowing the pace of its asset purchases, let alone thinking about raising interest rates,” said Paul Ashworth, chief U.S.
The decision comes the day before the Commerce Department releases preliminary first-quarter GDP figures that are projected to show a gain of 6.5%.
We’ve got uncertainty around corporate taxes, we’ve got uncertainty around interest rates, we do have uncertainty around supply chain disruptions and cost inflation,” said Rebecca Corbin, CEO of Corbin Advisors.
Goldman Sachs’ latest forecast is for inflation to remain around the Fed’s target at least through 2024.