The Federal Reserve, by its decision to extend purchases of government bonds, first poured blood into investors’ veins, but then came disappointment. According to some, central bankers did not meet expectations by not extending the maturity of bonds.
The dollar experienced Wednesday as if on a swing. He responded to the first reports that the Fed had decided to continue buying government bonds until full employment was restored. But then there was a reaction to the fact that Fed officials did not. Namely, that the maturity of the bonds was not extended. According to experts, this was a key moment that investors were also waiting for. So the dollar lost 0.2 percent and again approached the weakest level in two years.
The Federal Reserve has confirmed the base interest rate at technical zero and announced that purchases of government bonds will continue at $ 120 billion a month. Until the economy recovers significantly and unemployment gets close enough to its natural level. According to the Fed, interest rates will also not rise until inflation exceeds 2%. “These measures will ensure that monetary policy continues to provide the necessary strength and support to the economy until its recovery is complete,” said Fed Governor Jerome Powell.
