US Fed expects interest rate to be stable until 2023

US Federal Reserve Bank

The Federal Reserve decided to keep the interest rate at its current low level, expecting it to be maintained through 2023.

The policymaking Federal Open Market Committee also kept short-term borrowing rates steady between 0 and 0.25%, while continuing an asset purchase program in which the central bank buys at least $120 billion of bonds a month.

“Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak,” the Fed stated.

It further added that inflation continues to be below 2%.

For 2023, seven out of 18 Fed members see a hike, compared with five in December.