US Federal Reserve keeps interest rate unchanged

By Ovunc Kutlu

ANKARA (AA) - The US Federal Reserve said Wednesday it kept its benchmark interest rate unchanged between the 0.00% - 0.25% range during its last scheduled meeting in 2020.

The Fed said "economic activity and employment have continued to recover but remain well below their levels at the beginning of the year," in a statement regarding its Dec. 16 meeting.

"The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic," it said.

"The path of the economy will depend significantly on the course of the virus, including progress on vaccinations," it added.

The central bank still seeks to achieve maximum employment and inflation at the rate of 2% for the long-term, noting it will maintain its accommodative stance of monetary policy until the target is achieved.

The Fed held two emergency unscheduled meetings March 3 and March 15, lowering its benchmark interest rate to historically low levels to respond to the economic slowdown caused by the coronavirus.