The Federal Reserve announced that interest rates will remain at a near-zero level at least until 2023 to help the economy recover from the pandemic induced recession.
The interest rates will be between zero to 25 basis points until the labor market reaches “maximum employment and inflation reaches 2% at an average over time,” Jerome H. Powell, Chair of the Federal Reserve, said on Wednesday.
The Federal Reserve indicated that interest rates will be low and government spending will continue until inflation is over 2% and the unemployment rate is down to near 3.5%. The policies will remain in place until the economic expansion is well along with the agency’s goals, Powell said.
/The current inflation rate, as of August, is 1.3%. It will be around 2% in 2023, according to t…