To save the economy from the effects of the Corona, the Federal Reserve kept interest rates close to zero

Washington, Ta. 30 April 2020, Thursday

At the end of the two-day meeting, the US Federal Reserve reiterated that it would make every effort to revive the country's economy by keeping interest rates close to zero. The impact of the coronavirus is likely to have a serious impact on the country's economy not only in the short term but also in the medium term.

In a statement issued after a two-day meeting by videoconferencing, the Federal Reserve said it would use every means at its disposal to support the US economy in the face of the current challenges, and thus advance its goal of providing jobs and price stability.

Within a few weeks, the unemployment rate in the United States has skyrocketed, with more than 270 million people applying for unemployment benefits. For the first time since the Great Recession, the United States has seen such a sharp decline in economic activity.

Industries and businesses across the country have been forced to shut down to prevent the spread of coronavirus. Retail inflation has plummeted due to weak demand and lower crude oil prices, and disruptions to economic activity in the United States and abroad have weighed on the financial situation and disrupted credit flows to US households and businesses, according to the US Federal Reserve. The Open Market Committee said in its statement.

The public health crisis will have a significant impact on economic activity, employment and short-term inflation, which could pose a significant risk to the economic outlook in the medium term. In light of these facts, the federal government has indicated that its monetary policy will remain accommodative for the next few years.

The Fed also noted that the US economy has emerged from the current crisis and will keep interest rates in the range of zero to 0.5 per cent until it is established.