The Fed on Wednesday, April 28, kept its easy money policy in place despite an economy that it acknowledged is accelerating.
The U.S. central bank decided to keep short-term interest rates anchored near zero as it buys at least $120 billion of bonds each month.
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%.
“It will take some time before we see substantial further progress” in recovery, said Fed Chairman Jerome Powell, adding that it is still not time to talk about reducing policy accommodation. Read more.