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Fed vows to maintain bond-buying until 'substantial progress' in recovery

It was the more incremental step of the options the Fed was weighing, taken as policymakers boosted their outlook for economic growth next year to 4.2 per cent from 4 per cent at the median

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Federal Reserve Board building on Constitution Avenue is pictured in Washington. Photo: Reuters

Howard Schneider, Ann Saphir and Jonnelle Marte | Reuters Washington

4 min read Last Updated : Dec 17 2020 | 3:22 AM IST

The Federal Reserve on Wednesday promised to keep funneling cash into financial markets further into the future to fight the recession, even as policymakers' outlook for next year improved following initial rollout of a coronavirus vaccine.

Repeating a pledge to keep its benchmark overnight interest rate near zero until an economic recovery is complete, the US central bank said it would also now tie its program of monthly government bond purchases to that same goal.

"Together, these measures will ensure that monetary policy will continue to deliver powerful support to the economy until the recovery is complete," Fed Chair Jerome

Topics : US Federal Reserve Bond markets

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