The Federal Reserve committed to keeping interest rates near zero until America's labor market has recovered, possibly years
The Federal funds rate remained unchanged at zero to a quarter percentage point, and will stay there until America's labor market has recovered"consistent with the Committee's assessments of maximum employment" and the inflation rate has risen to 2%, and is on track to exceed that level for some time. Given the country is still down 11.5 million jobs since February and the consumer price inflation rate over the past 12 months stood at 1.
The Fed had some optimistic news to report: It updated its economic projections, and the picture seems to have improved. For example, the central bankers expect a median 7.6% unemployment rate for 2020, down from the 9.3% forecast in June. And projections for gross domestic product -- the broadest measure of the economy -- are now for a 3.7% decline for the year, a smaller contraction than the from 6.5% decline expected in June.
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