Fed upgrades view of economy while keeping rates near zero

Federal Reserve Chair Jerome Powell and his colleagues upgraded their assessment of the US economy but said they were not yet ready to consider scaling back pandemic support.

“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,” the Federal Open Market Committee said in a statement Wednesday, April 28, after holding its key interest rate near zero and maintaining a US$120 billion ($159 billion) monthly pace of asset purchases.

Marking a clear improvement since Covid-19 took hold more than a year ago, the Fed said that “risks to the economic outlook remain”, softening previous language that referred to the virus posing “considerable risks”.