US Federal Reserve leaves interest rates and asset purchases unchanged

US Federal Reserve headquarters

The US Federal Reserve decided to hold interest rate stable and made no change to its monthly bond purchases, as the recovery in economic activity has slowed in recent months.

The Federal Open Market Committee said on Jan. 27, 2021, it was keeping its benchmark short-term borrowing rate fixed at its current low level, which ranges between 0% and 0.25%.

The Fed also maintained an asset purchasing program that is seeing the central bank buy at least $120 billion a month.

“The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic,” the committee’s post-meeting statement said.

Investors are awaiting Federal Reserve Chairman Jerome Powell to hold a press conference later today to present his vision on the US economy and the possibility of adopting additional stimulus measures to confront the repercussions of the pandemic.