Federal Reserve pledges ‘powerful support’ for US economy

In its twice-a-year report to Congress on monetary policy released Friday, the US central bank indicated that it planned to maintain its low interest rate policies until further progress is made in recovering from the COVID-19 recession.

The United States Federal Reserve says its low interest rate policies are providing “powerful support” for the economy as it recovers from the coronavirus pandemic. In its twice-a-year report to Congress on monetary policy released Friday, the Fed indicated that it planned to maintain that support until further progress is made in recovering from last year’s severe recession. Over the first half of this year, progress on coronavirus vaccinations helped to reopen the economy and produced strong economic growth, according to the Fed, but it said the lingering effects of the COVID-19 pandemic continue to weigh on the economy, with employment still well below pre-pandemic levels.