The central bank of the United States (Fed) will keep interest rates at around zero percent until 2022. This is evident from the minutes of the meeting of the System of United States Central Banks.
The Fed also pledged to keep pumping money into the economy in light of the corona crisis. The US economy is expected to contract 6.5 percent this year and more than 9 percent of the labor force will be unemployed by the end of this year.
“The ongoing health crisis is weighing heavily on short-term economic activity, employment and inflation and poses significant risks to the medium-term economic outlook,” said the Federal Reserve.
In March, in response to the outbreak of the corona pandemic, interest rates were cut to around zero percent and trillions of dollars in credit were made available to banks, corporations and financial institutions.
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