US Economic Growth Rate Expected to Reach 3.7% This Year
[Asia Economy New York=Correspondent Baek Jong-min] The United States central bank, the Federal Reserve (Fed), has announced that it will maintain a zero interest rate policy until 2023.
On the 16th, the Fed stated in a statement released after the Federal Open Market Committee (FOMC) meeting that it would keep the benchmark interest rate unchanged at the current 0.00~0.25%.
The Fed also indicated through the dot plot showing FOMC members' interest rate projections that the zero interest rate will be maintained until 2023.
Reflecting the average inflation targeting announced in August, the Fed announced that it will aim for inflation above 2% for some time so that the long-term inflation rate target can reach 2%.
The U.S. economic growth rate for this year is expected to be -3.7%, and the unemployment rate 7.6%. The June projections were -6.5% and 9.3%, respectively. This appears to reflect that the U.S. economic situation is recovering faster than expected amid the COVID-19 pandemic.
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