. All but two policymakers see rates staying at historic lows through the following year. The projections are the Fed's first since December.
The group also set a floor for its asset purchases, guaranteeing it will take in at least $80 billion in Treasurys each month as well as $40 billion worth of mortgage-backed securities.A fund manager crushing 98% of his peers over the past half-decade told us 4 themes he's betting on and 4 he's betting against — and why the latest market rally still has room to run
"To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions," the committee said in a statement following its two-day meeting.
The central bank lowered its benchmark interest rate to a range of 0% to 0.25% in mid-March in one of its first moves to pad against the coronavirus pandemic's economic toll. The Fed followed up its rate cuts with unprecedented lending programs extending credit to corporations, households, and municipalities.Now read more markets coverage from Markets Insider and Business Insider:
not great for your portfolio, but good for keeping people above the bankruptcy line.
And who does near-zero interest rates help? All the unemployed people and bankrupted small businesses? NO! The rich!
The fed also sees, 'economy shrinking by more than 6 percent in that time' Also, 'projected a median unemployment rate of 9.3 percent in 2020, falling to 6.5 percent in 2021 and 5.5 percent in 2022.' Okay full story.
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