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Fed to keep buying bonds and sees no rate hike through 2022

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Posted at 2:27 PM, Jun 10, 2020
and last updated 2020-06-10 16:22:27-04

WASHINGTON (AP) — The Federal Reserve says it will keep buying bonds to maintain low borrowing rates and support the U.S. economy in the midst of a recession.

And it says nearly all the Fed’s policymakers foresee no rate hike through 2022.

The Fed has cut its benchmark short-term rate to near zero. Keeping its rate ultra-low for more than two more years could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.

The Fed said in a statement after its policy meeting ended that the viral outbreak has caused a sharp fall in economic activity and surge in job losses.