The Fed reiterated that it will maintain ultra-low interest rates in response to rising inflation and the rebound of the new crown pneumonia epidemic

  Under the dual crisis of inflation and the rising infection rate of the new crown pneumonia epidemic in the US economy, the Fed stated on July 28 local time that it will continue to maintain ultra-low interest rates.

The U.S. Central Bank will control the federal funds benchmark interest rate between 0% and 0.25%, and the Fed will continue to buy $120 billion in bonds every month. This policy is called "quantitative easing" and aims to keep credit prices low.

  The new round of worsening of the epidemic caused by the delta strain has made investors feel uneasy. They worry that the increase in infection rate may lead to a new round of blockade measures and prolong the time of economic recovery.

According to the US Centers for Disease Control and Prevention (CDC), the US has an average of 45,000 new cases per day in the past 7 days, compared with 11,000 cases per day in June.

Last week, the rebound of the epidemic triggered a large-scale sell-off in the stock market. The Dow Jones Industrial Average plummeted by more than 700 points, the largest drop since October last year.

  At the same time, the Fed is struggling to cope with higher-than-expected inflation. The government reported that the price of goods and services (CPI) rose to the highest level in 13 years in June, which intensified concerns that a rapid economic rebound might lead to uncontrolled inflation .

The US Department of Labor said in its monthly report that the consumer price index rose 0.9% from May and 5.4% from last year.

  The Federal Reserve Open Market Committee (FOMC) said in a statement after the meeting: “The Committee will continue to monitor the impact of incoming information on the economic outlook. If there is a risk that may prevent the Committee from achieving its goals, the Committee will be prepared to adjust its attitude toward monetary policy as appropriate.” (CCTV reporter Liu Xiaoqian)

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