The Fed: Nothing Changes

The Fed, acknowledging a softening economy, announced that short-term interest rates would stay near zero and that the bond-purchase program of $120 billion per month would remain unchanged (Wall Street Journal)

However, Fed officials have said they believe the setback is temporary.

They think the economy will bounce back later this year as vaccines are more widely distributed and begin to bring the deadly coronavirus pandemic under control. That, in their estimation, would allow restaurants, hotels, airlines and other businesses to begin moving back toward operating at full capacity.