Fed leaves rates unchanged between 0 and 0.25%

2021-06-19T22:53:10.421Z

The Federal Reserve has decided to leave US interest rates unchanged between 0% and 0.25%. As widely expected, the Federal Reserve has left key US rates unchanged between 0 and 0.25%, confirming that it is ready to deploy every resource to support a recovery that appears far from complete, even if there are signs of strengthening. The Federal Reserve has predicted a rise in inflation in 2021 and rate hikes by 2023, the Federal Open Market Committee said after concluding its two-day meeting. The Fed has revised up its forecasts for economic growth in the US this year and I have significantly revised up the inflation estimates, for which, however, it expects a decline as early as 2022. In the document released at the end of the FOMC,GDP growth of 7% is now indicated for 2021 (against + 6.5% in March), while for 2022 it confirms a + 3.3% and revises upwards the forecast for 2023 from +2.2 % to + 2.4%. Inflation estimates for 2021 have increased from 2.4% to 3.4%, while those for 2022 have been raised fractionally to 2.1%: For 2023 the estimate is 2.2%. Unemployment expectations remain unchanged at 4.5% in 2021, those of 2022 were reduced by one decimal to 3.8% and those of 2023 were confirmed at 3.5%. "Advances in vaccinations have reduced the spread of Covid-19 in the United States," the Fed said in a statement following its two-day meeting. "Between these advances and strong political support, the indicators of economic activity andemployment strengthened ".