The Federal Reserve met this past week to discuss policies for the next few years and determined that they will be pledging to keep interest rates near zero until 2023, as the central bank looks to continue to support the U.S. economic recovery out of the coronavirus recession. (Forbes)
This is AMAZING news! Especially for homeowners who are looking to refinance, upgrade, change homes, first time homebuyers, and all of real estate!
Here are the facts:
- The Fed kept short-term interest rates steady at the 0% to 0.25% range.
- The central bank also signaled that it would keep rates anchored near zero through at least 2023.
- While the economic recovery has “progressed more quickly than generally expected” and Fed forecasts have been revised up from previous projections, overall activity still remains “well below” the level it was before the pandemic, Fed chairman Jerome Powell said in a press conference.
- The central bank’s new approach to inflation is meant to support the labor market and broader economy by keeping interest rates lower for a longer period of time.
For more information…here are additional resources:
Dow Jumps 150 Points After Federal Reserve Announces New Approach To Inflation (Forbes)
The Fed Just Announced A Major Inflation Policy Change—Here’s Why That Matters (Forbes)
Federal Reserve Says It Will Keep Interest Rates Near Zero Until 2023 (Forbes)