June 15, 2020
According to our Stephen Miller, investors will move to top up portfolios after the US central bank signalled it would be holding rates at near zero for some time to boost an economic revival.
The Federal Reserve on Wednesday indicated it will be keeping its rate at 0 to 0.25 percent for some time, expecting to maintain it until it is confident the US economy has weathered the crisis and is on track to achieve its maximum employment and price stability goals.
The declaration came after the Federal Open Market Committee’s (FOMC) two-day meeting, the Fed’s first meeting since last year.
“The ongoing health crisis will weigh heavily on economic activity, employment and inflation in the near team, and poses considerable risks to the economic outlook over the [medium-term],” the Fed stated.
A dot chart showing the expectations of members of the Fed around when the funds rate would rise, showed most believed it remains at zero until reaching 2.5 percent at the end of 2022.
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